STORING 

ITS  ECONOMIC  ASPECTS 
AND    PROPER   METHODS 


BY  THE  SAME  AUTHOR 


A  COMPANION  VOLUME 

PURCHASING 

ITS  ECONOMIC  ASPECTS 
AND  PROPER   METHODS 

252  Pages    6X9    Postpaid  $3.00 
112  Charts,  Diagrams  and  Forms 


STORING 


ITS  ECONOMIC  ASPECTS 
AND  PROPER  METHODS 


BY 

H.    B.    TWYFORD 

1 1 

OTIS  ELEVATOR   COMPANY 

AUTHOB  OF     PURCHASING:  ITS  ECONOMIC  ASPECTS  AND 
PROPER  METHODS" 


WITH 
ILLUSTRATIONS  AND    FORMS 


NEW  YORK 

D.  VAN.  NOSTRAND  COMPANY 

25  PARK  PLACE 

1918 


COPYRIGHT,     1918 
BY    D.    VAN     NOSTRAND    COMPANY 


MAIN  LIBRARY 


THE- PLIMPTON 'PBESS 
NORWOOD-MASS' U-S«  A 


PREFACE 

SOME  of  the  most  momentous  problems  before 
business  men  to-day  calling  for  solution  are  those 
connected  with  storing  raw  materials  and  manu- 
factured articles  of  every  kind.  Situations  have 
arisen  in  the  recent  strenuous  times  which  have  made 
questions  regarding  storage  the  most  prominent  issue 
in  many  commercial  transactions.  Many  fortunes 
have  been  made  and  likewise  many  lost  in  storing 
goods.  Any  business  man  who  can  solve  storage 
problems  correctly  is  assured  of  success. 

Into  every  form  of  commercial  activity  which  in- 
volves the  retention  for  long  or  short  periods  of  mate- 
rials and  supplies  is  penetrating  the  new  importance 
of  storing.  It  is  not  a  new  problem,  but  it  has  at- 
tained a  new  importance  and  unobtrusively,  perhaps, 
but  none  the  less  surely,  it  is  rapidly  and  forcefully 
compelling  attention.  To  some  extent  this  is  due 
to  more  intensive  methods  of  figuring  costs  in  so  far 
as  they  affect  storage  problems.  These  costs  have 
a  vital,  and  oftentimes  a  determining,  influence  on 
the  other  aspects  of  storing  which  are  associated  with 
supply  and  demand. 

To  store  or  not  to  store  has  got  to  be  settled  on 
a  more  scientific  basis,  and  this  will  be  the  remedy 
for  some  of  the  irregularities  in  supply  and  demand. 
Irregularity  in  the  supply  of  material  is  not  always 
owing  to  actual  shortage  or  surplus,  but  to  hesitancy 


vi  PREFACE 

to  store  by  some  concerns  and  a  tendency  to  exces- 
sive storage  by  others.  These  conditions  are  caused 
by  inability  to  solve  properly  the  storage  question. 
Mere  price  fluctuations  do  not  create  shortages, 
except  as  they  may  be  allowed  to  influence  one's 
buying  and  storing  policy.  The  question  is  deeper 
than  just  one  of  price,  lack  of  labor,  car  shortages, 
freight  embargoes,  and  other  factors,  but  all  these 
have  brought  storage  problems  more  prominently 
to  the  front. 

Every  business  needs  a  certain  amount  of  raw 
material,  or  manufactured  articles,  or  supplies.  For 
successful  operation  there  must  be  sufficiency,  and 
there  must  not  be  lack.  Every  dollar's  worth  of 
goods  carried  in  stock  beyond  the  sufficiency  point 
creates  an  expense  beyond  the  needs  of  the  business, 
and  to  that  extent  decreases  the  profits.  Insufficiency 
endangers  the  smooth  working  of  a  manufacturing 
plant,  which  might  be  compelled  to  close  down,  or 
temporarily  suspend  the  operation  of  its  production 
department,  thereby  entailing  severe  losses.  And 
a  supply  house  unable  to  furnish  from  stock  articles 
which  it  is  supposed  to  carry  suffers  losses  both  tan- 
gible and  intangible. 

Too  often  the  storekeeper  is  looked  upon  as  a  man 
whose  duties  are  exclusively  physical.  He  is  not 
supposed  to  have  a  thinking  job.  The  position  of 
storekeeper  needs  better  recognition;  it  needs  recog- 
nition on  a  somewhat  different  basis  to  that  which  is 
usually  accorded  it.  Sufficient  consideration  has  not 
been  given  to  the  potentialties  of  the  keeper  of  the 
stores.  He  is  in  complete  control  of  a  very  large 
proportion  of  the  wealth  of  many  concerns.  If  he  is 


PREFACE  vii 

not  in  complete  control,  it  is  because  of  lack  of  ability 
and  vision  on  his  part,  or  because  he  is  not  given  a 
standing  commensurate  with  that  to  which  he  is 
entitled. 

Everything  held  in  storage  is  a  form  of  wealth. 
If  it  were  not  there  would  be  no  logical  reason  for 
storing  it.  Raw  materials  and  manufactured  goods 
are  wealth  in  its  best  and  truest  sense,  because  they 
are  the  product  of,  and  represent  the  industry  of, 
a  nation  or  community.  Money,  stocks,  bonds,  and 
other  forms  of  wealth  may  not  always  do  this.  All 
wealth  is,  or  should  be,  actively  utilized  to  produce 
other  forms  of  wealth.  Inactive  or  quiescent  periods 
are  unavoidable  with  the  property  under  considera- 
tion. It  takes  also  the  form  of  bulk;  it  needs  space 
and  storage  capacity;  it  must  be  guarded,  protected 
and  controlled.  Records  of  quantities  and  values 
must  be  kept.  It  is  some  of  the  problems  connected 
with  these  questions  that  I  have  attempted  to  eluci- 
date in  the  following  pages. 

H.   B.   TWYFORD 

NEW  YORK  CITY 


FOREWORD 

Acknowledgment  is  tendered  to  the  undermentioned 
concerns  who  furnished  the  material  from  which  the 
illustrations  of  storeroom  equipment  and  appliances 
were  made. 

BARRETT-CRAVENS  Co Multi-truck. 

THE  BERGER  MANUFACTURING  Co. .  Shelving  and  racks. 

COLUMBUS  LIFT  TRUCK  Co Lift  truck. 

ELLIOTT  FISHER  Co Bookkeeping  machines. 

MATHEWS  GRAVITY  CARRIER  Co. . .  Conveyors. 

THE  NATIONAL  SCALE  Co Counting  machines  and  scales. 

THE  NEW  BRITAIN  MACHINE  Co. .  Racks  and  tote  boxes. 

THE  PLIMPTON  PRESS Elevating  truck. 

C.  J.  ROOT  Co The  Root  counter. 

THE  STANDARD  SCALE  Co Counting  machines  and  scales. 

Acknowledgment  is  also  tendered  to  OTIS  ELEVATOR 
Co.,  H.  W.  JOHNS  MANVILLE  Co.,  WARNER  SUGAR 
REFINING  Co.,  and  JEFFREY  MANUFACTURING  Co.  for 
permission  to  reproduce  storeroom  forms.  The  reader 
should  bear  in  mind,  however,  that  the  discussion  is 
confined  to  generalities  and  does  not  describe  specif- 
ically the  routine  followed  by  any  of  the  concerns 
mentioned. 


CONTENTS 

CHAPTER! 

GENERAL  CONSIDERATIONS  pAQB 

Wealth  in  Storage ' 1 

Commercial  Storage 2 

Purpose  of  Storing 2 

Disadvantages  of  Storing 4 

Balancing  Storage  Considerations 4 

Relation  between  Buying  and  Storing 6 

CHAPTER  II 
ECONOMIC  QUESTIONS  CONNECTED  WITH  STORING 

Distinction  between  Storing  Material  for  Manufacturing  and  for 

Other  Purposes 8 

The  Speculative  Element  in  Storing 10 

Storage  Investments 10 

Changes  in  Values  during  Storage  Periods 11 

Storage  Costs 11 

Storage  Profits 14 

Market  Prices  and  Inventory  Prices 17 

Losses  in  Storage 18 

The  New  Importance  of  Storing 19 

Indulging  in  Extremes 20 

Scientific  Storing  is  Safe  and  Sane 21 

CHAPTER  III 

ECONOMIC    QUESTIONS    CONNECTED    WITH    STORING 

(Continued) 

The  Time  Element  in  Storing 23 

Psychology  in  Storing 24 

Obsolete  Materials.  25 


x  CONTENTS 

What  do  "Maximum"  and  "Minimum"  Mean? 26 

Fixing  the  Minimum  Limit  .    .    . 28 

Fixing  the  Maximum  Limit 29 

Purchasing  Problems  and  the  Storeroom 32 

Production  Problems  and  the  Storeroom  .  33 


CHAPTER  IV 
SPECIFICATIONS,  DEFINITIONS,  AND  STANDARDIZATION 

General  Remarks 35 

Technical  Specifications 37 

Correct  Commercial  Definitions 38 

Illustrations  of  Definitions 40 

What  the  Storeroom  can  do  in  Standardizing  Definitions  ....  45 

Obtaining  Proper  Definitions  and  Method  of  Using  them 47 


CHAPTER  V 
LOCATION  AND  EQUIPMENT  OF  STOREROOM 

Location 51 

Proportion 52 

Equipment 53 

Bins  and  Shelving 54 

The  Closed  Type  of  Bins 58 

Open  Shelving 60 

Racks 63 

Utilizing  all  Available  Space 65 


CHAPTER  VI 
APPLIANCES  FOR  USE  IN  THE  STOREROOM 

Movable  Equipment 67 

Counting  Machines 70 

Weighing  Machines  and  Scales 71 

Trucks 76 

Gravity  Conveyors 89 

Mechanical  Aids  .  95 


CONTENTS  xi 

CHAPTER  VII 
MANUAL  OPERATIONS 

Dual  Nature  of  Storeroom  Work 97 

General  Considerations 98 

Counting 100 

Hand  Counting 101 

Counting  by  Weight  and  Estimate 102 

Even-balance  Counting 104 

Counting  with  Proportional  Scales 105 

Automatic  Counting  Machines 108 

Summary Ill 


CHAPTER  VIII 
CLERICAL  WORK  — INVENTORIES 

The  Stores  Records 113 

The  Stores  Ledger 114 

Machine  Bookkeeping 115 

The  Physical  Inventory 116 

The  Perpetual  Inventory 120 

Summary 121 

Correct  Inventorying 121 

Other  Considerations 124 

Values  and  Stores  Inventories  .  126 


CHAPTER  IX 
THE  STORES  DEPARTMENT 

The  Storekeeper 130 

Sphere  of  Usefulness 131 

Relations  with  other  Departments 132 

Catalogues  and  Information 134 

Charts  and  Diagrams 142 

Personnel  of  the  Stores  Department 142 

Outline  of  Work.  146 


xii  CONTENTS 

CHAPTER  X 
RECEIVING  MATERIAL 

The  Delivery  Point 148 

Tracing  Shipments 149 

Getting  Delivery 150 

Receiving  Material  at  Destination 153 

CHAPTER  XI 

INSPECTING  AND  PLACING  MATERIAL  IN 
STOREROOM 

Inspection  and  Examination 164 

Inspection  before  Delivery 165 

Inspection  after  Delivery 165 

Receiving  Material  into  Storeroom 168 

Placing  Material  in  Receptacles 170 

Material  Returned  to  Stores 171 

Scrap  sent  to  the  Storeroom 172 

Storing  Stationery 173 

Storing  Finished  Product 175 

CHAPTER  XII 
DELIVERIES  FROM  STOREROOM 

General  Considerations 177 

Requisitions 178 

Issuing  Articles  in  Sets 180 

Shop  Orders  as  Requisitions 182 

Shortages 184 

Apparent  Shortages 186 

Issuing  Supplies 189 

Routine  Clerical  Work 190 

Overlooking  the  Minimum 191 

Purchase  Requisitions 193 

Summary 193 

INDEX  .  197 


LIST   OF   CHARTS,   DIAGRAMS   AND   FORMS 

FIGURE  PAGE 

1.  Diagram  indicating  additions  to  cost  of  material  placed  in 

storage         5 

2.  Index  card  for  specifications 38 

3.  Standard  definition  for  washers 40 

4.  Standard  definition  for  rivets 41 

5.  Method  of  defining  carbon  brushes 42 

6.  Method  of  tabulating  part  numbers 43 

7.  Method  of  defining  terms  used  hi  connection  with  parts  of  ap- 

paratus   44 

8.  Card  for  recording  standard  definitions 48 

9.  Perpetual  inventory  card  or  sheet  showing  method  of  recording 

standard  definitions 49 

10.  Showing  method  of  lettering  and  numbering  aisles      ....  53 

11.  Illustration  showing  the  arrangement  of  various  sizes  of  com- 

partments from  the  same  size  units 54 

12.  Showing  type  of  bin  extending  full  height  of  room    ....  55 

13.  Showing  assembling  of  a  lower  type 56 

14.  Showing  wide  aisle  to  permit  drawing  long  articles  from  bins   .  57 

15.  Showing  flexibility  in  arranging  the  sizes  of  bins       ....  58 

16.  Showing  details  of  construction  of  closed  type  of  bin      ...  59 

17.  Illustration  of  plain  shelves 60 

18.  Plain  shelves  with  fronts  attached  converted  into  bins  ...  61 

19.  Type  of  closed  rack  for  material  of  uniform  length   ....  62 

20.  New  Britain  Stock  Rack 63 

21.  Wall  type  of  rack 64 

22.  New  Britain  Revolving  Rack 65 

23.  Beam  of  an  automatic  counting  machine  .......  68 

24.  Counting  machine  of  the  counter  type 69 

25.  "              "      "    "   portable  floor  type        70 

26.  "               "       "    "   dormant  type 71 

27.  "              "      "    "   portable  type 72 

28.  Weighing  machine  of  the  dormant  type 73 

29.  Weighing  scale  with  dial 74 

30.  Heavy  type  of  weighing  scale  with  double  faced  dial      ...  75 

xiii 


xiv     LIST  OF  CHARTS,  DIAGRAMS  AND  FORMS 

FIGURE  PAGE 

31.  Plimpton  Elevating  Truck   . 76 

32.  Method  of  using  old-style  truck 78 

33.  Method  of  using  elevating  or  lifting  truck 78 

34.  Columbus  Lift  Truck,  without  platform 79 

35.  "            "       "      with  platform 79 

36.  The  Barrett  Multi-truck 80 

37.  Showing  stacking  on  platforms 81 

38.  Tote  boxes  moved  on  platforms 82 

39.  Storing  steel  filing  equipment  with  multiple  lifting  trucks    .     .  83 

40.  Handling  tote  boxes  filled  with  castings          84 

41.  Racks  built  on  platforms 85 

42.  Handling  cases  filled  with  small  parts 86 

43.  Large  number  of  cases  of  cigarettes  which  can  be  handled  on 

elevating  trucks 87 

44.  Platforms  arranged  with  special  racks  for  carrying  Edison 

records 88 

45.  Showing  how  the  gravity  conveyor  can  be  adapted  to  curves  and 

other  unusual  conditions 90 

46.  Boxes  of  limes  stacked  at  the  rate  of  sixteen  per  minute  with 

the  use  of  the  conveyor 91 

47.  Conveying  to  the  storeroom  cases  of  glassware  rapidly  and  with- 

out breakage 92 

48.  A  straight  run  to  the  storeroom 93 

49.  Conveying  cases  of  syrup 94 

50.  Automatic  counting  of  small  parts 100 

51.  All  sizes  counted  in  any  kind  of  container 103 

52.  The  work  of  counting  can  be  done  by  boys  or  girls      .     .     .  105 

53.  Illustration  of  counting  tubes  or  rods 106 

54.  The  Root  Counter 107 

55.  Stacking  barrels  can  be  used  to  great  advantage       ....  108 

56.  Stacking  tote  boxes  made  by  the  New  Britain  Machine  Co.    .     .  109 

57.  Storeroom  rack  designed  to  accommodate  the  tote  boxes  shown 

in  Figure  56 110 

58.  Tote  boxes  of  the  resting  type Ill 

59.  Elliott-Fisher  Bookkeeping  Machine 115 

60.  Perpetual  inventory  for  showing  method  of  inserting  standard 

definition  of  the  article 118 

61.  Perpetual  inventory  form,  alternate  to  Figure  60      ....  119 

62.  Perpetual  inventory  form  of  the  loose-leaf  type  used  by  H.  W. 

Johns  Manville  Co 123 

63.  Verification  card  used  by  the  checkers  or  auditors    ....  125 


LIST  OF  CHARTS,   DIAGRAMS  AND  FORMS  xv 

FIGURE  PAGE 

64.  Perpetual  inventory  form  with  columns  for  recording  values     .  127 

65.  Method  of  recording  data  obtained  from  catalogues  and  orders 

placed 133 

66.  Method  of  recording  information  on  sheet  copper 135 

67.  Showing  method  of  recording  contract  date  and  consumption      .  137 

68.  Recording  information  regarding  weight  of  wire 138 

69.  Extract  from  catalogue  with  data  on  steel  collars 139 

70.  Index  card  for  catalogues 140 

71.  Index  card  for  catalogues  under  name  of  manufacturer  ...  141 

72.  Chart  showing  variations  amount  of  cotton  waste  issued  by 

storeroom 143 

73.  Diagram  showing  relation  of  the  various  storeroom  operations 

to  the  perpetual  inventory 145 

74.  Form  for  requesting  information  regarding  shipment  of  ma- 

terial         151 

75.  Form  for  notifying  departments  that  material  has  arrived      .     .  153 

76.  Form  to  advise  shipment  of  material  requisitioned  by  outside 

storerooms 154 

77.  This  requisition  bears  on  the  reverse  side  spaces  for  recording 

receipt  of  material 157 

78.  Reverse  side  of  copy  of  order  for  recording  receipt  of  material .  158 

79.  Supplementary  form  to  Figure  78  for  recording  partial  receipts  .  159 

80.  Receiving  report  in  triplicate 161 

81.  Reverse  side  of  order,  used  for  recording  shipments  and  corre- 

spondence      162 

82.  Form  used  by  inspectors  for  making  reports 166 

83.  Form  for  reporting  results  of  physical  or  chemical  tests       .     .  169 

84.  Form  for  use  when  material  is  returned  to  storeroom     .     .     .  171 

85.  Form  to  accompany  all  scrap  sent  to  storeroom        ....  172 

86.  Report  of  material  or  scrap  to  be  sold 174 

87.  Requisition  on  storeroom 178 

88.  Requisition  on  storeroom 179 

89.  Storeroom  requisition 181 

90.  The  last  section  of  this  is  used  for  withdrawing  material  from 

stores 183 

91.  Shortage  ticket 185 

92.  Used  when  insufficient  material  has  been  drawn  from  the  stores  187 

93.  Requisition  for  supplies 189 

94.  Requisition  on  purchasing  agent 192 

95.  Storekeeper's  requisition  on  purchasing  agent 194 

96.  Form  of  requisition  on  purchasing  agent  from  departments    .  195 


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STORING 

CHAPTER  I 

GENERAL  CONSIDERATIONS 

Wealth  in  Storage 

THE  implication  to  be  drawn  from  the  fact  that 
an  article  or  commodity  is  being  stored  is  that 
the  thing  in  storage  has  some  value.  If  this  were  not 
the  case  there  would  be  no  logical  reason  for  storing 
it.  Therefore  everything  which  is  held  or  retained 
for  long  or  short  periods  is  a  form  of  wealth,  and 
economic  reasons  demand  that  all  wealth  be  properly 
guarded,  controlled,  and  recorded. 

The  earth  itself  is  one  vast  storehouse  of  untold 
riches,  great  quantities  of  which  are  being  taken  out; 
still  larger  quantities  are  undiscovered,  and  very 
large  quantities  are  discovered  but  undeveloped. 

All  forms  of  wealth,  if  properly  utilized,  produce, 
or  are  used  in  producing,  other  forms  of  wealth.  For 
example,  water  stored  in  a  reservoir  is  essential  to 
the  existence  of  the  people  and  preserves  the  health 
of  those  in  the  communities  it  serves,  thus  adding 
to  the  wealth  of  the  nation  as  represented  by  the 
health  of  the  population.  Wealth  in  the  shape  of 
grain  is  stored  in  elevators,  and  coin  and  bullion  in 
the  vaults  of  banks,  but  discussion  of  the  questions 


2  STORING 

regarding  the  storage  of  these  things  does  not  come 
within  the  scope  of  what  is  contemplated  in  the  pres- 
ent work. 

Commercial  Storage 

The  problems  it  is  proposed  to  discuss  are  those 
connected  with  commodities,  materials,  and  articles 
acquired  for  the  purpose  of  operating  any  commercial 
undertaking,  and  are  consumed  in  the  process,  such 
as  coal,  lubricating  oils,  stationery,  etc.;  or  which 
are  acquired  for  the  purpose  of  reselling  under  one 
of  the  following  classifications. 

1.  In  the  same  condition  as  purchased. 

2.  As  a  component  part  of  an  assembled  machine 

or  article. 

3.  After    manipulation    by    some    manufacturing 

process  which  converts  the  material  into  the 
finished  product  of  the  factory  through  which 
it  passes. 

Storage  problems  such  as  those  indicated  are  not 
new,  but  they  have  attained  a  new  importance  because 
of  the  closer  control  which  is  being  exercised  over 
all  forms  of  wealth,  because  of  the  desire  for  the  better 
ordination  of  the  economic  features  connected  with 
the  conservation,  handling,  and  distribution  of  wealth, 
and  because  of  the  growing  demand  which  exists 
for  a  wider  knowledge  of  the  factors  which  have  an 
influence  on  wealth  in  its  idle  or  quiescent  periods. 

Purpose  of  Storing 

To  obtain  the  greatest  benefits  from  any  form  of 
wealth  it  must  be  kept  in  a  state  of  activity,  and  if 
a  supply  in  unbroken  continuity  could  be  secured  of 


GENERAL  CONSIDERATIONS  3 

all  goods,  articles,  and  materials  required  by  the 
operations  of  business,  little  or  no  storing  would  be 
necessary  and  an  ideal  condition  would  exist,  because 
the  wealth  of  the  country  would  be  incessantly  at 
work  or  in  a  state  of  activity,  with  no  idle  periods. 

Owing  to  irregularity  in  the  output  of  commodities 
and  manufactured  articles,  and  to  the  fact  that  they 
are  used  or  consumed  in  localities  at  varying  dis- 
tances from  the  point  of  origin,  with  the  attendant 
uncertainties  and  delays  in  transportation,  it  becomes 
necessary  to  accumulate  stocks  of  materials  and 
articles.  These  stocks  may  be  held  where  produced, 
or  at  or  near  the  point  of  consumption. 

Having  these  stocks  available  facilitates  the  dis- 
tribution of  articles  in  daily  demand  and  enables 
commercial  operations  and  manufacturing  to  be  car- 
ried on  without  undue  delays  and  interruptions. 
A  manufacturer,  for  instance,  can  maintain  a  uniform 
rate  of  production  in  spite  of  fluctuations  in  demand, 
if  he  stores  his  surplus  output  during  the  dull  seasons. 
Working  under  these  conditions  he  can  operate  his 
factory  on  a  more  economical  basis  than  if  he  were 
operating  it  for  certain  periods  at  twenty  per  cent  of 
its  capacity,  at  other  times  at  sixty  per  cent,  and 
possibly  during  periods  of  unusual  stress  working 
overtime. 

Another  object  in  storing  goods,  merchandise,  and 
commodities  is  that  it  is  sometimes  possible  to  pur- 
chase these  things  when  they  are  not  needed  for 
immediate  consumption  at  very  favorable  prices  or 
prices  lower  than  normal.  It  then  becomes  necessary 
to  hold  them  until  such  times  as  they  are  needed  for 
manufacturing  purposes  or  a  resale  is  effected. 


4  STORING 

Disadvantages  of  Storing 

In  the  preceding  paragraphs  good  reasons  have 
been  briefly  stated  in  favor  of  storing,  but  there  are 
equally  good  and  cogent  reasons  against  storing, 
and  these  reasons  are  at  times  so  strong  as  to  com- 
pletely outweigh  the  advantages. 

To  place  any  article  in  a  storeroom  means  space 
must  be  provided  for  it  and  space  costs  money.  The 
goods  must  be  insured,  they  must  be  protected,  they 
must  be  handled  at  least  twice,  once  in  going  in  and 
again  in  going  out  of  the  storeroom.  They  may  be 
of  a  perishable  or  semi-perishable  nature  and  are  liable 
to  physical  deterioration.  They  are  liable  to  de- 
preciation in  market  value.  The  money  invested 
in  them  is  in  a  state  of  obsolescence  after  they  are 
paid  for  and  during  the  period  they  are  at  rest  in  the 
storeroom,  and  loss  of  interest  is  incurred  on  the 
money  invested. 

Balancing  Storage  Considerations 

The  crux  of  the  storage  problem  lies  in  the  consid- 
eration of  the  advantages  and  disadvantages.  Any 
business  man  finding  the  correct  solution  and  acting  on 
it  is  assured  of  success.  Many  business  failures  can  be 
attributed  to  overstocking  and  loose  storage  methods, 
while  many  concerns  have  successfully  passed  through 
crises  and  critical  periods  because  of  their  efficient 
storage  policy.  Foresightedness,  good  judgment,  and 
proper  calculation  of  all  the  features  outlined  and 
many  more  are  essential  to  successful  storing.  With- 
out these  the  consequences  may  be  disastrous. 

The  significance  of  the  question  whether  to  store 
or  not  to  store  has  been  compelling  attention  largely 


TRANSPORTATION     CHARGES 


COST   OF  MATERIAL 
AT  POINT  OF  SHIPMENT 


INTEREST  ON  MONEY  INVESTED 
IN  MATERIAL    IN   STORES 


COST  OF  CLERICAL  WORK 
IN  KEEPING  RECORDS 


COST  OF  HANDLING  IN 
DELIVERING  FROM  STORES 


LIGHT  AND  HEAT 


INSURANCE   ON   BUILDING 
EQUIPMENT  AND  CONTENTS 


DEPRECIATION     ON 
BUILDING  AND  EQUIPMENT 


INTEREST   CHARGES  ON  FIXED 
AND  MOVEABLE   EQUIPMENT 


RENT  OR  INTEREST  CHARGES 
ON    BUILDING 


SORTING    AND     PLACING 
ON  SHELVES  AND  RACKS  ! 


DELIVERING  TO   STOREROOM 


TRANSPORTATION     CHARGES 


COST    OF  MATERIAL 
AT  'POINT  OF  SHIPMENT 


FIGURE  No.  1  —The  cost  of  an  article  which  passes  directly  from  the  supplier 
to  the  user  is  covered  by  the  first  column  but  if  it  is  placed  in  the  stores 
its  ultimate  cost  to  the  user  is  increased  by  the  items  listed  in  the  second 
column. 


6  STORING 

because  of  better  methods  of  figuring  costs  and  a 
better  realization  of  these  costs,  especially  in  con- 
nection with  storage.  Unobtrusively  but  none  the 
less  surely  this  issue  is  forcing  attention  to  all  the 
problems  associated  with  it.  The  subject  is  of  vital 
interest  to  every  manufacturer,  every  jobber,  every 
supply  house,  in  fact  to  every  business  concern  buying 
goods  and  retaining  them  for  long  or  short  periods. 

Situations  have  arisen  in  the  recent  strenuous 
times  which  have  made  storage  questions  the  most 
prominent  issue  in  many  commercial  transactions. 
It  is  only  necessary  to  peruse  the  daily  papers,  trade 
publications,  and  technical  press,  to  realize  the  im- 
portance of  this.  Under-production,  shortages,  freight 
embargoes,  and  other  unusual  conditions  occur  and 
reoccur  with  such  frequency  as  to  be  almost  normal. 
Buyers  who  may  have  been  anticipating  their  actual 
needs  by  one  month  have  been  compelled  to  look 
ahead  three  months,  six  months,  and  even  twelve 
months  or  longer.  Storage  considerations  have  an 
important  bearing  on  these  purchases. 

Many  buyers  who  have  been  depending  on  getting 
their  supplies  direct  from  the  mills  have  had  to  fill 
their  requirements  from  supply  houses  and  local 
stocks.  In  all  such  cases  they  must  pay  the  storage 
costs  and  the  expenses  of  handling  incurred  by  the 
dealer,  and  it  is  essential  for  the  buyer  to  know  some- 
thing of  these  costs  for  him  to  properly  determine 
the  economy  of  a  purchase. 

Relation  between  Buying  and  Storing 

Buying  and  storing,  although  distinct  and  separate 
functions  in  any  business,  are  closely  related  in  all 


GENERAL  CONSIDERATIONS  7 

those  cases  where  the  goods  do  not  immediately  pass 
out  of  the  possession  of  the  purchaser. 

Determination  of  questions  regarding  storage  are 
frequently  controlled  by  conditions  in  the  buying 
market.  Conversely  questions  regarding  purchasing 
are  frequently  determined  by  storage  conditions.  It 
will  be  necessary,  therefore,  in  discussing  the  economic 
aspects  of  storing  to  refer  to  purchasing  and  market 
conditions. 


CHAPTER  II 

ECONOMIC  QUESTIONS  CONNECTED  WITH 
STORAGE 

Distinction  between  Storing  Material  for  Manufacturing 
and  for  other  Purposes 

^  I  ^HE  classifications  mentioned  in  the  last  chapter 
-I  have  varying  problems  and  need  separate  treat- 
ment, but  apart  from  the  strictly  economic  and  com- 
mercial features  there  is  not  so  much  difference  as 
to  warrant  separate  discussion.  In  later  chapters 
such  matters  as  conveying,  transporting,  handling, 
and  storing  goods  and  materials  will  be  discussed 
collectively  in  spite  of  certain  distinctions  between 
the  various  classifications  and  perhaps  some  minor 
differences  and  distinctions  in  the  manual  and  clerical 
work  connected  with  the  operation  of  a  storeroom. 

Primarily  all  business  operations  are  conducted 
for  profit,  but  in  buying  and  storing  goods  the  ques- 
tion of  profit  cannot  be  considered  in  the  same  manner. 
For  instance,  goods  which  are  bought  and  stored  for 
resale  in  the  same  condition  as  purchased  are  procured 
exclusively  for  the  purpose  of  making  a  profit  when 
the  selling  transaction  is  completed.  Between  this 
class  of  goods  and  material  which  is  procured  for 
manufacturing  purposes  there  is  the  great  fundamental 
difference  that  the  latter  class  are  dependent  on  the 
skill  of  the  workmen  and  the  manufacturing  art  to 


ECONOMIC  QUESTIONS  9 

convert  them  into  a  product  which  can  be  disposed 
of  at  a  profit. 

The  profits  of  most  manufacturing  plants  are  de- 
pendent on  the  continuous  and  unbroken  operation 
of  their  production  departments,  and  the  successful 
operation  of  these  departments  means  that  they  must 
be  supplied  with  raw  material  without  cessation. 
Therefore  it  must  be  procured  and  stored  in  the  req- 
uisite quantities  to  insure  this.  Sufficient  quanti- 
ties must  always  be  on  hand  and  ample  storage  space 
must  be  provided.  The  cost  of  the  material  may 
be  high  and  questions  regarding  the  actual  price  paid 
may  have  to  give  way  to  the  imperative  necessity 
of  maintaining  a  certain  minimum  quantity  in  the 
stores. 

These  considerations  do  not  apply  in  storing  goods 
for  resale  purposes.  If  a  buyer  cannot  see  a  sure 
profit  he  has  the  option  of  staying  out  of  the  market 
and  allowing  his  warehouse  to  remain  empty  or  he 
has  the  alternative  of  filling  his  storage  space  with 
speculative  purchases.  Whichever  course  he  pursues 
he  must  take  certain  factors  into  consideration.  If 
his  storage  space  is  vacant  there  are  some  overhead 
expenses  being  incurred  such  as  rent,  building  in- 
surance, etc.  On  the  other  hand,  if  his  storage  space 
is  fully  occupied,  there  are  additional  overhead  ex- 
penses, such  as  insurance  on  the  goods,  protection 
against  loss  by  theft,  protection  against  depreciation 
and  loss  of  interest  on  the  money  invested. 

There  are  the  main  differences  between  storing 
material  for  resale  purposes  and  manufacturing  pur- 
poses, and  these  facts  should  be  borne  in  mind  through- 
out the  discussion  of  storage  problems. 


10  STORING 

The  Speculative  Element  in  Storing 

There  is  not  always  a  well-defined  object  in  storing 
material.  It  may  be  bought  and  carried  purely  as 
a  speculation,  but  even  so  the  speculator  cannot  ignore 
or  evade  the  carrying  and  storage  charges.  A  manu- 
facturer or  a  jobber  may  speculate  in  purchasing  and 
storing  goods  and  at  the  same  time  have  a  good  pros- 
pect or  one  more  or  less  remote  of  using  them  in  the 
production  department  or  reselling  them. 

It  will  be  seen  that  there  are  many  phases  of  the 
question  as  to  why  storage  is  resorted  to  and  why  it 
is  necessary,  but  none  of  these  affect  the  economic 
problems  which  are  insistent  factors,  whether  the 
storage  is  purely  speculative,  whether  it  is  the  result 
of  well-ripened  and  balanced  judgment,  or  whether 
it  is  caused  by  the  necessity  of  maintaining  a  sufficiency 
of  raw  material  for  manufacturing  purposes. 

Storage  Investments 

All  manufactured  or  semi-manufactured  goods  and 
all  raw  material  are  a  form  of  wealth.  It  is  wealth 
in  its  best  and  truest  sense,  because  it  is  the  product 
of  and  represents  the  industry  of  a  nation  or  com- 
munity. Money,  stocks,  bonds,  and  other  forms  of 
wealth  may  not  always  do  this. 

The  property  under  consideration  takes  the  form 
of  bulk;  it  needs  space  and  storage  capacity.  It  must 
be  guarded,  protected,  and  controlled.  Records  of 
quantities  and  values  must  be  kept.  All  of  these 
features  necessitate  an  expense  outlay.  Therefore 
the  ownership  of  this  form  of  wealth  carries  with  it 
the  responsibility  of  obtaining  an  increased  price 


ECONOMIC  QUESTIONS  11 

for  it  when  ownership  is   transferred  to  cover  the 
expenses  referred  to  or  a  loss  will  be  incurred. 

Changes  in  Values  during  Storage  Periods 

Changes  may  occur  in  the  monetary  value  of  goods 
in  storage  through  market  fluctuations.  An  appre- 
ciation in  the  price  is  naturally  very  desirable,  and  as 
already  stated  storage  is  often  resorted  to  for  the 
purpose  of  holding  certain  goods  until  the  advanced 
price  can  be  secured.  Conversely,  there  may  be 
depreciation  in  values,  but  good  judgment  and  fore- 
sightedness  can  largely  prevent  this. 

It  is  a  common  fallacy  that  all  goods  in  storage 
are  depreciating  in  value,  because  of  the  items  of 
expense  already  referred  to.  This  is  far  from  being 
the  case.  The  expense  of  storing  adds  to  the  cost  of 
goods;  it  does  not  depreciate  values.  The  causes 
which  make  for  degradation  in  values  while  material 
is  at  rest  in  the  stores  are  depreciation  in  market 
prices  and  physical  deterioration  from  natural  causes 
or  from  carelessness  in  handling. 

Storage  Costs 

In  computing  the  cost  of  any  article  which  is  in 
storage  every  item  of  expense  must  in  the  last  analysis 
be  absorbed  into  the  total.  The  primary  object  in 
all  commercial  transactions  being  to  keep  the  cost 
of  goods  as  low  as  possible,  it  becomes  apparent  that 
storage  problems  are  of  considerable  importance. 

There  can  never  be  any  fixed  rules  as  to  actual 
storage  costs,  but  there  are  always  certain  factors 
which  must  be  taken  into  consideration  in  determining 
the  costs.  The  costs  themselves  will  vary  tremen- 


12  STORING 

dously  and  will  be  governed  very  largely  by  the  nature 
of  the  goods,  the  location  of  the  storehouse,  the  length 
of  the  quiescent  period,  the  difficulties  of  handling, 
the  necessity  of  protection  from  physical  injury,  and 
many  other  causes. 

There  is  first  the  permanent  investment  in  build- 
ings to  be  taken  into  consideration,  or  if  space  is 
rented  for  storage  purposes  the  rent  is  the  first  item  to 
appear  in  storage  costs.  This  item  is  subject  to  ex- 
treme variations  because  the  character  of  material  low 
in  intrinsic  value  may  require  large  areas,  whereas 
valuable  material  may  often  be  stored  in  small  spaces. 
Location  has  an  important  bearing  on  this  question, 
and  it  assumes  some  magnitude  if  it  is  in  an  expensive 
section  of  a  city  or  in  a  congested  district.  Such 
a  condition  might  make  prohibitive  the  use  of  large 
areas,  or  it  might  render  necessary  the  location  of  the 
stores  in  some  less  expensive  section. 

Other  factors  are  brought  to  the  front  in  deciding 
the  question  of  space.  If  it  is  curtailed  to  a  point 
where  it  leads  to  a  congested  condition  in  the  store- 
room, many  inconveniences  and  delays  will  occur 
in  handling  the  stock.  It  will  mean  that  frequently 
material  must  be  handled  two  or  three  times  where 
only  once  would  be  necessary  if  space  were  ample. 
The  lack  of  space  and  additional  handling  may  cause 
physical  damage  to  the  stock.  Only  one  result  is 
possible  from  insufficient  storage  facilities  and  that 
is  extra  expense  and  added  costs. 

The  capital  outlay  on  a  storeroom  includes  an  in- 
vestment in  equipment.  This  equipment  will  vary 
almost  as  much  as  the  building,  the  variations  being 
governed  by  the  character  of  the  goods  being  stored. 


ECONOMIC  QUESTIONS  13 

Both  fixed  and  movable  equipment  is  necessary  and 
consists  of  racks,  bins,  apparatus  for  weighing,  meas- 
uring, moving,  handling,  etc.  All  these  must  be  pro- 
vided as  conditions  demand. 

Although  no  two  warehouses  or  storerooms  may  be 
similar  in  size,  location,  or  equipment,  still  there  are 
well-defined  rules  for  determining  the  overhead  charges 
comprised  in  the  capital  outlay.  In  calculating  stor- 
age costs  this  investment  must  be  taken  into  consider- 
ation, with  the  attendant  interest  charges,  depreciation, 
etc.  These  items  are  susceptible  of  accurate  determi- 
nation. 

A  factor,  however,  which  cannot  always  be  accu- 
rately determined  or  at  least  would  sometimes  need 
elaborate  accounting  calculations  to  arrive  at  a  cor- 
rect figure,  is  the  interest  charge  on  the  money  in- 
vested in  the  goods,  materials,  and  supplies  in  the 
stores.  The  credit  periods  arranged  by  buyers  vary 
greatly,  and  in  some  cases  goods  might  be  paid  for 
before  entering  the  stores,  while  in  other  cases  they 
may  have  passed  out  of  the  stores  before  any  money 
is  actually  disbursed  in  payment. 

In  a  manufacturing  plant  raw  material  storage 
ceases  as  soon  as  it  passes  out  of  the  raw  material 
stores  for  manipulation  in  the  shop,  and  factory 
storage  costs  can  be  figured  up  to  that  point.  There 
is  an  investment  and  a  corresponding  interest  charge 
on  material  while  undergoing  conversion  in  the  shop 
into  the  finished  product,  but  the  storekeeping  func- 
tion ends  with  the  passage  of  the  material  out  of  the 
stores.  This  is  also  true  of  goods  sold  and  shipped 
out  of  storerooms  and  warehouses.  If  strict  accuracy 
were  desired  on  this  point,  it  would  be  necessary  to 


14  STORING 

figure  the  exact  amount  of  interest  on  the  money 
from  the  time  the  cash  outlay  was  made  until  the 
material  was  moved  from  the  stores.  The  cost  of 
borrowing  money  to  carry  goods  in  storage  cannot 
be  considered  if  proper  allowance  is  made  tfor  interest 
on  money  invested  in  goods  in  storage,  as  this  would 
simply  be  duplication  of  costs. 

Storage  costs  must  bear  their  proper  proportion 
of  general  burden  and  overhead  expense;  when  these 
have  been  equitably  divided  and  spread  over  an  estab- 
lishment their  effect  on  storage  costs  can  be  accurately 
determined. 

Insurance  is  another  item  of  expense  which  for 
goods  in  stores  should  be  segregated  from  the  general 
insurance  expense  of  an  establishment.  It  is  quite 
easy  to  average  the  value  of  the  stock  on  hand  and 
keep  it  amply  covered,  allocating  to  storage  costs  the 
exact  amount  of  the  premiums. 

Finally,  all  items  of  expense  for  which  the  store- 
room is  directly  responsible  are  a  part  of  storage  costs. 
These  include  salaries  and  wages  connected  with  stores 
bookkeeping,  and  in  receiving,  handling,  and  delivering 
the  stock.  All  stationery  and  appliances  used  exclu- 
sively in  the  storeroom  should  be  charged  accordingly. 

Storage  Profits 

Appreciation  in  price  is  the  only  source  from  which 
a  profit  can  be  shown,  and  this  appreciation  must 
run  at  a  faster  rate  than  the  storage  costs  to  enable 
a  profit  to  appear.  If  the  activities  of  the  sales  de- 
partment of  an  organization  result  in  disposing  of  the 
goods  in  storage  at  a  profit,  that  is  something  quite 
apart  from  what  happens  to  those  goods  during  the 


ECONOMIC  QUESTIONS  15 

quiescent  period  while  they  are  lying  dormant  in  the 
stores.  The  present  discussion  is  confined  to  that 
period. 

By  far  the  greatest  number  of  transactions  which 
involve  the  storing  of  goods  for  long  or  short  periods 
are  made  with  the  prospect  that  the  market  price 
will  remain  stationary  during  the  storage  period,  but 
purchases  are  often  made  with  the  expectation  and 
hope  that  an  advance  will  take  place  before  a  resale 
is  effected.  Nobody  wants  a  decline  to  take  place 
during  the  period  under  consideration,  but  there  are 
many  occasions  when  material  and  articles  must  be 
stored  without  too  much  weight  being  given  to  ques- 
tions of  appreciation  and  depreciation  in  price. 

Some  jobbing  and  supply  houses  have  a  policy  of 
carrying  a  certain  amount  of  stock  to  take  care  of 
their  regular  trade,  and  will  do  this  in  the  face  of  un- 
rest and  upheavals  in  market  prices.  Even  if  losses 
are  contemplated  through  depreciation,  it  is  considered 
better  policy  to  take  the  risk  of  these  rather  than 
risk  the  loss  of  good  customers. 

While  market  prices  naturally  influence  the  buying 
of  raw  material  for  a  manufacturing  plant,  still  there 
comes  a  time  when  this  influence  is  counteracted  by 
the  necessity  which  exists  of  keeping  a  sufficiency 
of  raw  material  in  the  stores  to  enable  the  produc- 
tion department  operations  to  proceed  without  let  or 
hindrance.  Much  greater  losses  would  probably  be 
sustained  by  a  temporary  stoppage  of  active  manu- 
facturing operations  through  lack  of  raw  material 
than  from  losses  through  depreciation  in  price. 

What  becomes  of  the  so-called  profits  in  storing 
materials?  From  the  point  of  view  of  the  jobber 


16  STORING 

and  supply  house  it  is  comparatively  simple,  because 
when  a  sale  is  made  the  profit  can  be  absorbed  into 
the  profit  and  loss  account;  but  what  is  the  manu- 
facturer going  to  do  who  may  have  to  maintain  a 
stock  of  50,000  pounds  of  sheet  copper  as  a  minimum 
for  his  factory  requirements?  This  may  be  inven- 
toried one  year  at  30  cents  per  pound  and  a  year  later 
at  40  cents  per  pound.  Such  a  condition  has  been 
quite  possible  in  the  recent  strenuous  times. 

If  fluctuations  in  market  prices  are  allowed  to  con- 
trol inventory  prices,  there  is  here  an  apparent  profit 
of  10  cents  per  pound,  equaling  $5000.  This,  however, 
is  far  from  being  the  case,  unless  during  the  interval 
between  the  inventories  the  price  of  all  incoming 
copper  had  been  at  30  cents,  the  price  prevailing  when 
the  first  inventory  was  taken.  This  is  almost  an 
impossible  condition  in  a  rapidly  advancing  market 
such  as  the  change  hi  price  would  indicate.  What 
actually  occurs  is  this:  the  copper  in  the  stores  when 
the  first  inventory  was  taken  would  be  absorbed  into 
the  manufacturing  costs  at  the  price  paid  for  it.  All 
shipments  of  copper  coming  into  the  stores  after  the 
inventory  would  likewise  be  absorbed  into  the  pro- 
duction costs  at  the  price  paid  for  it.  Shipments 
might  come  in  during  the  year  at  32,  34,  and  36  cents 
per  pound  and  the  stock  still  maintained  at  a  uniform 
level  of  50,000  pounds.  There  are  then  only  the 
last  receipts  into  the  stores  to  be  considered.  Assum- 
ing that  the  price  paid  for  the  last  50,000  brought 
into  the  stores  was  36  cents  per  pound  and  when  the 
inventory  was  taken  the  market  price  was  40  cents, 
this  would  show  a  storage  profit  of  4  cents  per  pound 
or  $2000. 


ECONOMIC  QUESTIONS  17 

Market  Prices  and  Inventory  Prices 

The  foregoing  discussion  brings  to  the  front  the 
subject  of  inventory  prices,  and  there  are  many  con- 
cerns whose  customary  methods  are  to  adopt  the 
market  prices  in  compiling  inventory  values.  This 
policy  has  all  the  elements  of  instability.  "What 
goes  up  must  come  down"  is  a  saying  in  the  specu- 
lative world;  and  while  the  purchasing  and  storing 
of  merchandise  is  usually  far  removed  from  specu- 
lation, still  if  there  is  any  truth  in  the  saying,  then  an 
inventory  taken  at  the  top  of  an  unusual  rise  would 
be  to  a  large  extent  fictitious  and  simply  inflating  the 
profits.  The  reverse  would  be  the  case  after  a  severe 
downward  movement  of  prices  which  would  have 
a  tendency  to  indicate  losses  not  actually  incurred. 

It  is  possible  that  the  variations  in  prices  over  a 
period  of  years  would  be  so  slight  that  the  prevailing 
prices  could  be  used  each  time  an  inventory  was  made 
up.  When  conditions  are  unusual  it  does  not  seem 
that  ordinary  methods  are  applicable.  Then,  what 
should  the  man  do  who  is  carrying  a  heavy  stock  of 
raw  materials  and  merchandise,  and  prices  are  fluctu- 
ating abnormally?  This  is  a  problem  for  the  manu- 
facturer, wholesaler  or  retailer. 

During  recent  years  nearly  all  prices  have  advanced, 
and  most  of  these  advances  have  been  maintained  at 
a  level  which  would  justify  one  in  regarding  the  high 
prices  as  normal.  Why,  then,  cannot  an  inventory 
be  made  up  at  existing  prices  and  the  profit  and  loss 
account  credited  accordingly?  Even  if  a  decline  is  not 
imminent,  even  if  the  exceptional  price  level  has  every 
appearance  of  stability,  still  there  must  come  ultimately 
an  easing  of  prices  if  not  a  rapidly  falling  market. 


18  STORING 

The  conservative  man  can  only  treat  abnormal 
rises  in  prices  in  one  way  as  far  as  his  inventory  is 
concerned.  He  should  figure  that  he  has  but  half 
completed  the  transaction  and  that  it  is  better  not 
to  consider  the  increases  as  permanent  profit.  He 
should  consider  that  he  is  temporarily  custodian  of 
this  profit,  a  part  of  which  may  remain  with  him  if 
his  judgment  has  been  sound  and  no  adverse  con- 
ditions arise. 

Instead  of  crediting  the  advance  to  profit  and  loss 
account,  it  is  better  to  keep  a  separate  account  of  the 
"  temporary  profit."  Should  the  high  prices  continue 
from  one  inventory  to  another  until  they  become 
almost  stable  and  normal,  it  may  be  permissible  to 
consider  part  of  the  temporary  profit  as  permanent 
profit,  but  a  certain  amount  should  be  retained  as  a 
reserve  against  a  decline  that  is  inevitable. 

Losses  in  Storing 

Depreciation  in  prices  is  a  factor  already  alluded 
to.  Sound  judgment  in  buying  should  reduce  this 
to  a  minimum,  but  values  will  sometimes  suffer  from 
this  cause,  even  when  buying  is  done  with  the  utmost 
discretion. 

Physical  deterioration  is  a  factor  which  varies  with 
the  character  of  the  material.  For  instance,  highly 
perishable  goods  can  scarcely  be  considered  in  con- 
nection with  storing.  They  must  be  disposed  of  or 
consumed  promptly.  There  are  many  so-called  semi- 
perishable  articles  and  materials  composed  of  fabrics, 
paper,  leather,  rubber,  etc.,  which  are  liable  to  de- 
terioration, and  some  must  have  special  protection. 
Even  the  harder  metals  are  not  improved  by  storing, 


ECONOMIC  QUESTIONS  19 

although  they  may  not  deteriorate.  There  are  many 
materials  which  are  liable  to  injury  from  abrasion  and 
handling.  Others  may  suffer  from  rust  or  weather 
conditions.  While  great  care  may  be  taken  to  pre- 
vent depreciation  in  values  from  these  causes,  there 
is  always  a  more  or  less  intangible  loss  from  them  in 
storing. 

Sudden  changes  in  fashions  may  render  part  of  a 
retailer's  stock  a  white  elephant  and  entail  a  loss  in 
disposing  of  it.  For  the  manufacturer  and  whole- 
saler there  is  not  so  much  danger,  but  new  discoveries, 
processes,  and  developments  may  result  in  changes  or 
improvements  in  a  product  which  would  render  out 
of  date  or  partially  obsolete  whatever  stock  might 
be  on  hand.  The  danger  of  this  is  naturally  much 
greater  in  the  case  of  manufactured  articles  than  with 
raw  materials.  These  evolutions,  however,  do  not 
often  come  so  suddenly  that  an  alert  buyer  cannot 
protect  himself. 

The  New  Importance  of  Storage 

Into  every  form  of  commercial  activity  which  in- 
volves the  retention  for  long  or  short  periods  of  mate- 
rials and  supplies  of  any  kind  is  penetrating  the  new 
importance  of  storing.  It  is,  perhaps,  unobtrusive, 
but  none  the  less  sure.  It  is  not  a  new  problem,  but 
it  has  attained  a  new  importance  and  is  rapidly  and 
forcefully  compelling  attention.  This  is  largely  due 
to  more  intensive  methods  of  figuring  costs  and  the 
desire  for  a  better  realization  of  these  costs,  in  so  far 
as  they  affect  storage  problems. 

This  brings  into  more  prominent  consideration  the 
storage  questions  and  forces  decisions  on  a  more 


20  STORING 

scientific  basis,  of  whether  to  store  or  not  to  store. 
If  one  looks  through  the  technical  press  or  even  the 
daily  papers  of  recent  times,  plenty  of  evidence  can 
be  obtained  of  shortages  of  various  goods  and  mate- 
rials. This  is  not  always  owing  to  actual  famine,  but 
to  hesitancy  to  store  by  some  firms  and  a  tendency 
to  excessive  storage  by  others.  These  conditions  are 
caused  by  inability  to  properly  solve  the  storage  ques- 
tion. Mere  price  fluctuations  do  not  create  short- 
ages except  as  they  may  be  allowed  to  influence  one's 
buying  and  storing  policy.  The  question  is  deeper 
than  just  one  of  price,  lack  of  labor,  car  shortages, 
embargoes,  and  other  factors,  but  all  these  have 
brought  storage  problems  more  prominently  to  the 
front. 

Indulging  in  Extremes 

The  storekeeper  of  a  manufacturing  establishment 
who  is  responsible  for  maintaining  a  sufficiency  of 
raw  materials  may  have  become  alarmed  by  tardy 
deliveries  and  if  he  is  cooperating  with  a  purchasing 
agent  who  is  alarmed  by  rapidly  rising  prices  a 
combination  may  be  developed  which  illustrates  one 
extreme.  Reckless  and  unbalanced  buying  and  stor- 
ing may  result,  and  all  the  economic  losses  these 
involve  will  be  suffered. 

The  other  extreme  is  represented  by  an  indifferent 
or  too  complacent  attitude  on  the  part  of  the  store- 
keeper and  purchasing  agent.  As  a  consequence  of 
this  attitude  many  opportunities  to  replenish  stocks 
are  allowed  to  pass.  In  strenuous  times  greater 
watchfulness  of  the  market  and  supervision  of  stocks 
is  necessary  or  shortages  will  occur,  and  attempts 


ECONOMIC  QUESTIONS  21 

will  be  made  to  cover  these  by  hurried  purchases 
from  warehouses  at  prices  much  higher  than  those 
prevailing  for  mill  shipments. 

Scientific  Storing  is  Safe  and  Sane 

Probably  safe  and  sane  storekeeping  is  more  essen- 
tial in  a  manufacturing  establishment  than  in  any 
other  commercial  activity.  This  is  because  of  the 
imperative  necessity  of  keeping  the  exact  quantity 
of  raw  material  on  hand  in  advance  of  the  production 
department's  actual  needs.  Storage  problems  can- 
not be  solved  by  chance  or  impulse;  they  are  matters 
of  calm  deliberation  and  weighing  of  the  advantages 
and  disadvantages. 

The  storekeeper  does  not  want  to  do  too  much 
worrying  about  price  fluctuations.  Scientific  rules 
are  possible  for  storeroom  operations  and  for  deter- 
mining the  maximum  and  minimum  quantities  to 
keep  on  hand.  If  the  storekeeper  does  not  maintain 
a  rigid  adherence  to  these  rules  the  fundamental 
economic  factors  on  which  the  rules  are  based  are 
thrown  to  the  winds. 

The  storekeeper  has  to  consider  and  carefully 
weigh  his  storage  costs  in  relation  to  his  maximum 
and  minimum  quantities.  To  commence  pondering 
whether  certain  price  fluctuations  warrant  his  increas- 
ing or  decreasing  his  stock  is  dangerous  because  it  may 
bias  his  judgment  on  purely  storekeeping  problems. 
It  is  better  to  let  the  purchasing  agent  deal  with 
questions  of  price  fluctuations  and  market  conditions. 

When  the  high  and  low  limits  have  been  definitely 
fixed  is  the  proper  time  for  other  factors  to  be  taken 
into  consideration,  but  until  they  are  fixed  external 


22  STORING 

considerations  should  not  be  considered,  because  the 
limits  are  purely  problems  of  internal  management. 
It  may  become  necessary  at  some  time  to  consider 
the  advisability  of  disregarding  the  safety  limits  set 
by  the  inexorable  demands  of  the  production  depart- 
ment and  the  economic  factors  connected  with  good 
storage.  This  will  be  discussed  in  the  next  chapter, 
but  when  such  occasions  do  arise  it  is  because  of  pur- 
chasing problems.  It  is  then  that  the  storekeeper 
must  be  called  into  consultation  and  he  must  be  pre- 
pared to  demonstrate  his  storage  costs  and  problems 
as  an  aid  and  assistance  in  arriving  at  a  decision 
regarding  the  contemplated  departure. 


CHAPTER  III 

ECONOMIC  QUESTIONS  CONNECTED  WITH  STORAGE 
(Continued) 

The  Time  Element  in  Storage 

TIME  is  the  great  enemy  of  goods  in  storage. 
Efforts  are  unceasingly  made  in  all  commercial 
transactions  to  keep  costs  at  the  lowest  point,  but  time 
is  adding  to  these  costs  every  day  and  twenty-four 
hours  a  day  for  every  article  in  the  storeroom.  Time 
is  therefore  one  of  the  great  storage  problems.  This 
is  evidenced  by  the  lower  cost  of  goods  which  pass 
direct  from  the  producer  to  the  consumer  without 
being  subjected  to  any  storage  process. 

There  is  but  one  way  time  can  render  a  service 
of  a  favorable  nature  to  goods  in  storage,  and  that  is 
through  a  change  in  price  which  would  increase  the 
intrinsic  value,  but  considerations  of  this  character 
do  not  alter  the  influence  which  time  has  on  the  stor- 
age function. 

Any  active  industrial  establishment  or  supply  house 
must  maintain  its  stock  of  raw  material  and  goods 
at  a  certain  point  which  will  insure  a  sufficiency  to 
meet  the  demands  of  the  business.  Knowing  the 
importance  of  this,  knowing  the  imperative  necessity 
of  maintaining  a  supply,  the  general  storekeeper 
could  play  safe  and  keep  his  stock  at  a  point  higher 
than  absolutely  necessary.  No  good  storekeeper,  how- 


24  STORING 

ever,  would  do  this;  he  would  carefully  weigh  the 
economic  factors,  which  are  continually  adding  to  the 
cost,  and  the  physical  factors,  which  may  be  lowering 
the  value  of  the  goods  under  his  charge.  Having 
by  scientific  calculations  determined  the  maximum 
amount  to  carry  in  stock,  anything  in  excess  of  this 
entails  expense  and  added  cost,  the  burdens  of  which 
must  be  spread  and  distributed  over  all  other  goods 
in  the  stores. 

Whenever  a  purchase  is  contemplated  in  excess  of 
known  storage  requirements,  the  considerations  men- 
tioned compel  close  attention  because  they  represent 
the  storekeeper's  bill  of  costs,  and  these  costs  must 
be  set  against  the  lower  purchase  or  against  the  ap- 
preciation in  price  it  is  hoped  to  gain. 

Psychology  in  Storing 

A  full  warehouse  and  an  abundance  of  goods  in- 
duces extra  efforts  on  the  part  of  salesmen.  For  its 
psychological  effect  this  is  worth  something.  With 
a  depleted  stock  the  activities  of  salesmen  are  liable 
to  slacken.  The  worker  in  a  factory  will  also  slacken 
his  efforts  if  he  sees  very  small  quantities  of  raw  mate- 
rial in  front  of  him.  This  is  a  well-established  fact, 
although  the  worker  may  be  unconscious  of  it  and  no 
doubt  many  would  deny  it. 

A  record  kept  by  an  engineer  in  charge  of  large 
building  operations  showed  a  decrease  of  30  per  cent 
in  the  number  of  bricks  laid  per  day  when  the  supply 
had  diminished  to  small  proportions.  With  an  abun- 
dance of  material  and  with  all  supplies  coming  in  freely 
the  percentage  immediately  rose  rapidly. 
:  -The  income  tax  and  other  taxes  real  and  threatened 


ECONOMIC  QUESTIONS  —  Continued  25 

have  been  known  to  affect  the  storing  of  materials 
and  supplies.  Some  concerns  have  permitted  the 
investment  of  part  of  their  profits  in  raw  materials 
where  they  may  escape  part  of  the  taxation  which 
would  be  levied  if  these  profits  appeared  in  the  profit 
and  loss  or  surplus  account.  There  can,  however, 
be  only  isolated  instances  where  such  a  policy  is  ad- 
visable. To  evade  successfully  a  real  or  threatened 
tax  the  storage  policy  would  be  affected  for  an  indefi- 
nite period,  and  when  all  the  risks  of  such  a  course 
are  taken  into  account  it  cannot  be  recommended. 

Obsolete  Materials 

Crude  raw  material  practically  never  becomes  en- 
tirely obsolete.  A  manufacturing  plant  may  dis- 
continue the  use  of  a  certain  raw  material,  but  that 
renders  it  obsolete  only  so  far  as  that  particular  es- 
tablishment is  concerned.  It  may  still  be  in  demand 
by  many  other  concerns.  Just  as  soon  as  any  crude 
raw  material  goes  through  a  manufacturing  process 
the  danger  of  its  becoming  obsolete  increases.  As 
some  finished  products  go  through  many  such  proc- 
esses, it  follows  that  greater  care  must  be  exercised 
in  such  cases.  To  illustrate  this,  suppose  a  manu- 
facturer is  using  brass  sheets  and  suddenly  decides 
to  substitute  aluminum  sheets,  the  brass  sheets  could 
scarcely  be  considered  obsolete  if  they  were  of  standard 
gauge  and  size.  If,  however,  the  brass  had  been 
subjected  to  an  additional  manufacturing  process 
and  pressed  or  spun  into  special  shapes,  it  might 
become  entirely  obsolete. 

Obsolete  material  is  dead  material.  It  is  worse 
than  dead,  because  storage  costs  in  connection  with 


26  STORING 

it  are  a  live  factor  and  are  continually  mounting 
upwards.  It  is  imperative,  therefore,  that  all  obso- 
lete material  be  quickly  disposed  of.  It  is  better, 
however,  never  to  let  obsolete  material  accumulate. 
If  an  infallible  system  could  be  devised  for  fixing 
maximum  and  minimum  limits,  it  would  obviate 
any  danger  of  having  in  the  stores  surplus  or  obsolete 
material,  but  this  is  an  impossibility.  There  is  at 
some  time  in  every  storeroom  obsolete  material  of 
some  kind,  and  to  prevent  this  a  close  study  and 
constant  watch  must  be  kept  of  the  maximum  and 
minimum  limits  set  for  governing  the  quantity  of 
each  item  in  the  storeroom. 

What  do  "Maximum"  and  "Minimum"  Mean 

These  terms  in  relation  to  goods  in  storage  are 
important.  They  are,  in  fact,  the  most  important 
features  in  storage  problems.  The  correct  determi- 
nation of  maximum  and  minimum  quantities  to  be 
carried  in  stock  is  a  science,  and  the  storekeeper 
who  can  come  nearest  to  accuracy  in  respect  to  the 
two  factors  will  have  attained  an  economic  advan- 
tage of  great  value. 

The  needs  of  every  business  require  a  certain  amount 
of  raw  materials,  articles,  goods,  and  supplies.  For 
successful  operation  there  must  be  sufficiency  and 
there  must  not  be  lack.  Every  dollar's  worth  of 
goods  carried  in  stock  beyond  the  sufficiency  point 
creates  an  expense  beyond  the  needs  of  the  business 
and  to  that  extent  decreases  the  profits.  Insufficiency 
of  raw  materials  and  supplies  endangers  the  smooth 
working  of  the  whole  establishment.  A  manufac- 
turing plant  closed  down  or  compelled  to  temporarily 


ECONOMIC  QUESTIONS  —  Continued  27 

suspend  the  operations  of  its  production  department 
sustains  severe  losses,  and  a  supply  house  unable  to 
furnish  from  stock  articles  which  it  is  supposed  to 
carry  suffers  losses  both  tangible  and  intangible. 

All  of  the  preceding  discussion  has  served  to  empha- 
size the  importance  of  fixing  accurate  maximum  and 
minimum  limits  and  the  question  naturally  arises  as 
to  the  manner  in  which  this  can  be  done.  There  are 
a  great  many  calculations  to  be  made  and  there  are 
many  features  and  elements  which  influence  the  set- 
ting of  these  limits,  and  as  these  vary  to  some  extent 
with  every  business,  the  final  decision  is  individual, 
but  the  fundamental  principles  on  which  these  de- 
cisions are  based  is  the  same  in  every  case.  The 
main  features  to  be  considered  are  as  follows: 

1.  The  needs  of  the  business. 

2.  The  minimum  quantity  which  can  be  kept  in 

the  storeroom  without  endangering  the  sus- 
pension of  factory  operations,  or  in  the  case 
of  a  jobbing  house  the  normal  requirements 
of  customers. 

3.  The  available  storage  space. 

4.  The  length  of  time  required  to  obtain  the  material. 

5.  The    quantity    which  can    be    purchased    most 

economically. 

6.  The  financial  position  of  a  concern  may  have 

some  influence  in  certain  cases. 

For  every  item  in  every  storeroom  there  is  an  exact 
quantity  which  is  a  safe  minimum.  Every  time  this 
is  exceeded,  rent,  interest,  insurance,  and  every  other 
economic  factor  is  working  against  the  storeroom. 
If  it  were  possible  immediately  to  replace  the  quantity 


28  STORING 

taken  from  the  storeroom  with  a  fresh  supply,  an 
ideal  condition  would  exist,  and  the  only  factor  to  be 
considered  would  be  the  minimum  quantity  one  should 
carry.  But  this  is  an  impossible  condition  and  to 
provide  a  margin  of  safety  a  maximum  quantity  must 
be  fixed. 

Fixing  the  Minimum  Limit 

Perhaps  the  establishment  of  a  minimum  is  not  so 
important  for  a  supply  house  as  it  is  for  a  manufac- 
turing plant,  and  perhaps  the  rules  governing  the 
minimum  are  not  so  rigid.  The  quantities  sold  hi 
the  past  can  be  accurately  determined  and  forecasts 
of  sales  for  given  periods  should  give  close  estimates 
of  future  demands.  From  these  calculations  a  mini- 
mum can  be  established. 

In  all  manufacturing  industries  there  is  a  constantly 
increasing  demand  for  economy  in  operation  and 
reduction  of  costs.  The  fact  is  too  often  overlooked 
that  the  cost  of  a  manufactured  article  does  not 
begin  when  the  workman  starts  operations,  but  the 
initial  item  of  cost  is  the  price  paid  for  raw  material. 
From  that  point  the  cost  piles  up  in  a  succession  of 
accretions  which  follow  each  other  in  regular  ro- 
tation. Storage  costs  must  take  their  proper  place 
and  be  absorbed  into  the  cost  of  the  manufactured 
article.  It  is  important,  therefore,  to  keep  these  costs 
at  the  lowest  possible  point,  and  this  can  best  be  done 
by  maintaining  a  minimum  amount  of  stock  in  the 
storeroom.  The  production  manager  has  to  consider 
the  output  of  his  factory,  whether  this  output  is  uni- 
form throughout  the  year  and  whether  any  manu- 
facturing changes  are  contemplated,  which  are  likely 


ECONOMIC  QUESTIONS  —  Continued  29 

to  make  any  change  in  the  rate  of  output  or  change 
in  the  character  of  the  material.  Having  determined 
these  points  in  reference  to  all  articles  he  is  making, 
he  can  then  compile  a  schedule  of  his  raw  material 
requirements.  Each  item  in  this  schedule  must  be 
reviewed  at  periodic  intervals.  Failure  to  do  this  is 
frequently  the  cause  of  shortages  or  the  accumulation 
of  obsolete  material. 

The  storekeeper  being  furnished  with  these  sched- 
ules, it  then  becomes  his  duty  to  have  always  on 
hand  the  raw  materials  to  supply  the  demands  of  the 
factory.  For  example,  the  production  manager  may 
specify  his  requirements  of  a  certain  material  at  400 
pounds  per  week.  It  then  becomes  the  storekeeper's 
duty  to  determine  the  minimum  amount  he  can  keep 
in  the  stores  to  satisfy  this  demand. 

For  the  economic  reasons  already  given  every 
calculation  of  the  storekeeper  must  keep  in  view 
the  maintenance  of  his  stock  at  the  lowest  level  con- 
sistent with  safety.  For  every  item  in  a  storeroom 
there  is  an  exact  quantity  which  is  a  safe  minimum. 
Every  time  this  is  exceeded  the  storage  costs  are 
working  unduly  against  the  manufacturing  costs. 
Every  time  the  quantity  is  lower  than  the  exact  mini- 
mum the  danger  is  imminent  of  a  factory  shut  down, 
with  all  the  losses  that  entails. 

Fixing  the  Maximum  Limit 

The  maximum  quantity  must  be  flexible,  to  meet 
changing  conditions.  One  of  the  most  difficult  situ- 
ations to  deal  with  is  a  growing  scarcity  of  some 
commodity  with  the  attendant  uncertainty  regarding 
time  of  delivery.  There  have  been  many  instances 


30  STORING 

where  a  commodity  could  be  procured  with  certainty 
in  two  weeks.  A  growing  scarcity  or  congestion  on 
the  transportation  lines  extended  this  time  to  one 
month,  and  later  to  two,  four,  or  even  six  months. 
And  in  such  cases  deliveries  are  very  uncertain  at 
best.  A  three  months7  promise  of  delivery  may  be 
a  four  months'  performance.  Such  conditions  can 
only  be  safely  taken  care  of  by  liberally  increasing 
the  maximum  limits  to  provide  for  all  contingencies. 

Flexibility  in  fixing  the  maximum  quantity  is  also 
permissible  in  those  cases  where  it  is  found  more 
economical  to  buy  in  larger  quantities.  For  example, 
a  buyer  may  find  that  he  can  purchase  1000  units  at 
a  much  lower  price  than  500,  but  he  may  be  restricted 
to  500  if  he  is  to  keep  within  the  maximum.  It  then 
becomes  a  question  of  balancing  the  advantage  in 
price  against  the  storage  costs.  If  the  decision  is  in 
favor  of  buying  at  the  lower  price  the  maximum  must 
be  increased.  It  is  not  always  just  a  question  of 
price  only;  sometimes  it  may  be  advantages  in  trans- 
portation and  in  payment  of  delivery  charges  which 
influence  the  decision. 

Two  maximum  limits  are  used  in  the  operation  of 
some  stores.  The  lower  one  represents  the  maximum 
amount  of  material  which  must  be  in  the  storeroom 
at  any  time,  while  the  higher  one  represents  the  maxi- 
mum amount  requisitioned,  but  not  delivered  into 
storeroom.  In  these  cases  the  lower  limit  is  inflex- 
ible, but  the  higher  limit  can  be  made  as  flexible  as 
necessary  to  meet  delivery  conditions.  By  way  of 
example,  we  will  assume  the  needs  of  a  business  require 
a  stock  of  50  tons  of  #16  gauge  steel  sheets  36"  x  96" 
as  a  minimum,  and  owing  to  space  conditions  the 


ECONOMIC  QUESTIONS  —  Continued  31 

stock  of  this  material  must  never  exceed  75  tons. 
Here  we  have  two  inflexible  limits,  and  it  might  be 
possible  in  normal  times  for  the  storekeeper  to  req- 
uisition and  the  purchasing  agent  to  buy  and  pro- 
cure delivery  without  breaking  through  the  barriers 
set  in  either  direction.  But  it  is  not  always  possible 
to  do  this,  and  a  flexible  maximum  must  be  arranged. 

The  illustration  given  is  a  very  simple  one.  In 
actual  practice  much  more  complicated  problems 
arise  even  in  normal  times.  Continuing  the  discus- 
sion of  the  example  given,  the  flexible  maximum  must 
be  fixed  to  meet  the  market  conditions.  Assuming 
that  the  difference  between  the  limits,  which  in  this 
case  is  25  tons,  represents  one  month's  consumption, 
then  the  buyer  always  has  this  length  of  time  to 
replenish  the  stock,  but  it  may  become  impossible 
to  procure  deliveries  regularly  enough  to  maintain 
this,  or  the  buyer  may  find  he  can  purchase  200  tons 
at  much  more  favorable  prices.  Thus  it  becomes 
necessary  to  determine  a  flexible  or  buyer's  maximum. 
In  such  cases  we  have  first  the  minimum  limit  set  as 
the  least  amount  which  must  be  in  the  storeroom  at 
any  time.  Next  we  have  the  limit  set  as  the  maxi- 
mum amount  to  be  in  the  storeroom,  and  thirdly  we 
have  the  maximum  amount  which  may  be  purchased. 
The  difference  between  the  second  and  third  limit  is 
set  to  give  the  purchasing  agent  freedom  of  action. 
He  can  use  all  the  art  of  his  profession  within  those 
limits.  He  can  buy  or  not  buy,  but  he  must  obtain 
delivery  as  and  when  storeroom  conditions  demand. 

The  storekeeper's  calculations  must  be  accurately 
made  on  the  following  points.  He  must  figure  the 
exact  time  required  to  receive,  inspect,  and  store 


32  STORING 

each  item,  so  that  he  may  be  able  to  specify  on  his 
requisition  to  the  purchasing  agent  the  exact  date 
on  which  material  must  reach  the  establishment. 

The  fixing  of  minimum  and  maximum  limits  has 
been  called  scientific  guessing,  but  economic  reasons 
demand  as  much  science  and  as  little  guessing  as 
possible.  Very  close  figures  can  be  prepared  for  any 
storeroom.  It  has  been  shown  that  important  factors 
control  the  establishment  of  a  minimum  and  the 
flexibility  essential  in  establishing  the  maximum  is 
largely  caused  by  the  freedom  of  action  necessary 
in  buying. 

Influence  of  Purchasing  Problems  on  the  Storeroom 

Many  purchasing  problems  are  closely  related  to 
storing  problems.  In  many  cases  they  cannot  be 
dissociated.  Due  consideration  must  be  given  by  the 
party  exercising  one  function  to  the  problems  of  the 
other.  The  purchasing  agent  must  keep  the  store- 
keeper advised  of  delivery  conditions.  The  store- 
keeper has,  therefore,  on  one  hand  a  schedule  of 
quantity  requirements  from  the  production  manager 
and  a  shedule  of  time  requirements  from  the  pur- 
chasing agent. 

Some  items  may  be  freely  obtained  at  a  few  days' 
notice;  others  may  take  weeks,  and  others  months. 
In  all  these  instances  changes  are  liable  to  occur,  but 
the  purchasing  agent  should  sense  the  changes  from 
market  indications  and  give  due  notice  to  the  store- 
keeper to  enable  him  to  prepare  his  requisitions  a 
sufficient  length  of  time  ahead  of  actual  needs  to 
permit  the  purchasing  function  proper  scope  and  to 
insure  delivery  at  the  specified  date. 


ECONOMIC  QUESTIONS  —  Continued  33 

Theoretically  these  may  look  like  comparatively 
easy  problems,  the  solution  of  which  should  offer 
no  difficulties,  but  in  practice  they  are  not  so  simple. 
Many  of  the  calculations  made  do  not  materialize 
in  the  manner  estimated.  It  is  necessary,  therefore, 
for  the  purchasing  agent  to  consider  the  variations 
and  how  to  overcome  them.  Assuming  that  he  has 
entered  into  a  contract  for  a  staple  material  to  be 
supplied  in  quantities  of  uniform  amounts  at  regular 
intervals  to  conform  to  the  storekeeper's  minimum, 
still,  he  may  suddenly  find  the  regular  supply  stopped. 
Strikes,  breakdowns,  embargoes  have  played  havoc 
with  deliveries  in  recent  strenuous  times. 

Such  contingencies  must  be  provided  for  and  auxil- 
iary sources  of  supply  located  and  kept  in  view,  so 
that  the  deficiency  can  be  made  good.  If  this  shortage 
has  to  be  supplied  by  purchases  from  local  warehouses 
at  a  higher  price  than  for  mill  shipments  called  for  in 
the  contract,  then  it  is  a  question  as  to  whether  it  is 
a  more  economical  proposition  to  pay  the  higher  price 
or  raise  the  storekeeper's  maximum  limits.  If  goods 
are  bought  from  warehouse  and  afterwards  stored  by 
the  buyer,  he  is  paying  storage  costs  twice,  that  is, 
both  the  seller's  and  his  own.  Recourse  to  increasing 
the  maximum  adds  to  storage  costs,  but  enables  a 
larger  stock  to  be  carried  to  tide  over  temporary 
shortages. 

Production  Problems  and  the  Storeroom 

Some  mention  of  these  is  necessary  to  emphasize 
their  influence  on  the  storeroom.  An  example  has 
already  been  cited  of  production  requirements,  but 
that  example  contemplated  a  uniform  demand  on  the 


34  STORING 

storeroom  for  a  staple  material.  When  manufacturing 
one  article  or  machine,  such  as  a  typewriter,  it  is  com- 
paratively easy  for  the  production  manager  to  specify 
his  needs  both  in  respect  to  quantities  and  time, 
because  he  should  know  accurately  his  rate  of  pro- 
duction; but  it  is  much  more  difficult  and  compli- 
cated when  the  output  of  a  factory  consists  of  many 
different  types  of  machines,  some  of  which  may  be 
called  for  and  constructed  at  irregular  intervals. 

The  production  manager  would  naturally  wish  to 
be  in  a  position  to  make  promptly  any  of  the  various 
machines  sold  by  his  establishment.  There  are,  how- 
ever, many  instances  in  which  certain  large  machines 
may  be  built  several  times  within  a  few  weeks,  and 
there  may  be  an  interval  of  some  months  when  but 
very  few  are  constructed.  This  condition  of  irregu- 
larity is  difficult  to  meet  as  far  as  providing  the  raw 
material  is  concerned.  The  production  manager  must 
base  his  estimates  very  largely  on  information  from 
the  sales  department.  He  has  got  to  look  far  enough 
ahead  but  at  the  same  time  if  he  should  specify  re- 
quirements too  far  in  advance  and  very  few  sales  were 
effected  in  that  period,  the  storeroom  might  get  loaded 
up  with  a  vast  amount  of  slow-moving  raw  material. 

The  storekeeper  can  be  of  great  assistance  in  such 
matters.  He  can  give  the  production  manager  ac- 
curate figures  as  to  the  amount  of  space  available 
for  such  material  and  he  can  also  give  him  exact 
figures  of  the  storage  costs  for  that  material  per  day, 
week  or  month.  This  is  valuable  information  for 
a  production  manager,  and  of  considerable  help  in 
the  circumstances  quoted. 


CHAPTER  IV 

SPECIFICATIONS,  DEFINITIONS,  AND 
STANDARDIZATION 

General  Remarks 

every  article  in  every  storeroom  there  is  a 
correct  description.  This  description  may  con- 
sist of  only  two  or  three  words  and  figures,  or  it  may 
require  a  detailed  technical  specification  to  identify 
properly  the  material  so  that  no  misconception  can 
possibly  exist  as  to  what  is  actually  meant. 

Failure  to  describe  properly  articles  or  to  have 
standard  methods  of  defining  them  leads  to  endless 
confusion  in  some  storerooms,  and  entails  much  extra 
work  and  expense  in  referring  requisitions  back  and 
forth  to  clear  up  moot  points. 

The  matter  has  been  engaging  the  serious  attention 
of  many  large  manufacturers,  and  illustrations  will 
be  given  of  the  efforts  made  to  solve  the  problem. 
Whatever  is  undertaken  in  this  direction  must  be 
comprehensive;  that  is,  it  must  apply  equally  to  the 
storeroom,  production  department,  purchasing  de- 
partment, and  to  the  engineering  or  other  interested 
departments.  Every  employee  of  a  concern  having 
anything  to  do  with  the  material,  articles,  and  supplies 
purchased  and  used  should  be  compelled  to  conform 
to  the  standard  methods  of  describing  them. 


36  STORING 

The  advantages  of  standardization  are  not  confined 
to  the  particular  establishment  putting  it  into  force, 
but  it  has  a  much  wider  and  broader  influence,  for  it 
has  a  favorable  effect  on  the  economics  of  business  in 
general.  The  discussion  on  this  point  will  be  limited, 
because  it  is  somewhat  outside  of  storeroom  economics, 
but  it  is  desired  to  point  out  what  far-reaching  in- 
fluence loose  storeroom  methods  may  have. 

If  a  storekeeper  draws  up  a  requisition  for  materials 
or  supplies  and  uses  incorrect  or  inadequate  descrip- 
tions, it  is  more  than  probable  that  these  will  be  re- 
peated by  the  purchasing  agent  in  sending  out  his 
inquiries  and  orders.  The  recipients  of  these  will 
come  back  with  requests  for  information  of  a  more 
exact  and  definite  nature. 

If  reports  were  obtained  from  business  houses  an 
overwhelming  majority  would  testify  that  their  ex- 
penses are  largely  increased  because  of  the  conditions 
referred  to.  A  vast  amount  of  the  time  of  salesmen 
and  clerks  is  taken  up  investigating  the  inquiries  and 
orders  they  receive  in  an  endeavor  to  discover  exactly 
what  is  required.  This  means  many  unnecessary  tele- 
phone calls,  much  correspondence  which  could  be 
avoided,  and  a  great  deal  of  salesmen's  time  wasted. 
The  additional  expense  caused  by  these  factors  must 
be  added  to  the  cost  of  the  goods  and  covered  by  the 
selling  price;  therefore  the  buyer  must  eventually 
pay  them.  The  storekeeper  has  a  large  part  to  per- 
form in  reducing  these  expenses,  and  in  accomplish- 
ing this  he  will  reduce  the  cost  of  the  goods  under  his 
charge. 

To  specify  means  to  describe  accurately,  to  be 
definite,  to  be  explicit.  With  many  small  articles  in 


SPECIFICATIONS  AND  STANDARDIZATION        37 

common  use  this  accuracy  can  be  expressed  in  the 
commercial  terms  in  general  use  in  the  trade,  but  there 
are  certain  materials  which  need  greater  particular- 
ization  and  must  be  described  in  highly  technical 
terms  and  probably  some  tests  must  be  specified 
which  the  material  is  to  undergo.  This  distinction 
segregates  roughly  all  articles  and  materials  into 
two  classes,  and  they  will  therefore  be  discussed 
separately. 

Technical  Specifications 

Under  this  heading  are  those  descriptions  of  mate- 
rial which  the  engineering  staff  should  draw  up  and 
which  become  the  standard  specifications  for  the  raw 
material  used  in  the  factory.  These  specifications 
should  be  furnished  to  the  storekeeper  and  purchasing 
agent.  It  may  not  be  the  duty  of  the  storekeeper 
to  see  that  the  material  under  his  charge  conforms 
to  these  specifications,  but  he  should  have  copies  and 
inform  himself  regarding  the  characteristics  of  the 
material  in  his  storeroom.  These  specifications  may 
provide  for  certain  physical  tests  or  chemical  analyses. 
If  these  are  not  carried  out  before  the  material  reaches 
the  storeroom,  it  may  be  the  storekeeper's  duty  to 
have  them  made,  and  this  phase  of  his  work  will 
be  referred  to  in  a  subsequent  chapter  in  discussing 
the  operation  of  a  storeroom. 

The  specifications  themselves  should  be  kept  in 
folders  properly  indexed  as  indicated  in  Figure  2. 
In  addition  to  this  a  numerical  list  of  all  specifications 
should  be  kept  to  enable  any  one  of  them  to  be  found 
quickly,  either  by  number  or  title.  With  some  ar- 
ticles the  engineering  staff  may  furnish  blue  prints, 


38  STORING 

and  these  can  be  kept  in  a  manner  similar  to  the 
specifications. 

Correct  Commercial  Definitions 

These  definitions  are  those  which  apply  to  articles 
in  general  use  and  for  which  there  are  well-recognized 
trade  names  and  descriptions.  Many  storerooms  carry 


SPECIFICATION    NO DATE FOLDER    NO. 


NAME    OF    MATERIAL 


REVISED    DATES 


SPECIFICATIONS   CONNECTED   WITH    THIS 


REMARKS 


FIGURE  No.  2.  —  Index  card  for  specifications.    Size  3x5. 

no  other  goods  and  every  storeroom  has  some  of  them. 
Comprising,  therefore,  a  very  large  proportion  of  the 
stock  in  storerooms,  it  is  essential  that  they  be  prop- 
erly described  and  designated. 

The  correct  definition  does  not  only  mean  getting 
the  right  name;  it  also  means  specifying  the  quantity, 
size,  and  weight  correctly.  In  those  establishments 
where  standard  definitions  are  not  enforced  it  is  a 
common  occurrence  to  see  ojie  man  name  the  length 
first  and  the  width  next,  while  another  will  reverse 
this.  Again,  one  man  will  give  the  name  of  the  ar- 


SPECIFICATIONS  AND  STANDARDIZATION       39 

tide  first,  followed  by  quantity,  size,  or  weight,  while 
another  will  give  the  quantity  or  weight  before  nam- 
ing the  article.  The  variations  are  so  many  and  lead 
to  so  much  confusion  in  some  establishments  that 
it  has  been  found  imperative  to  compel  the  use  of 
proper  definitions. 

The  storeroom  is  probably  more  interested  in  this 
matter  than  any  other  department,  because  it  is  the 
medium  through  which  the  material  and  articles  are 
distributed,  and  because  it  has  to  use  the  names  more 
frequently  than  other  departments.  The  storeroom 
employees  come  into  physical  contact  with  the  goods, 
whereas  to  the  cost  department  and  purchasing  depart- 
ment employees  the  mention  of  them  carries  no  more 
meaning  than  just  a  name.  The  storeroom  usually 
draws  more  requisitions  than  any  other  section  of  an 
organization,  and  as  already  pointed  out  it  is  neces- 
sary for  these  requisitions  to  be  correctly  written  up. 

There  have  been  a  great  many  attempts  to  standard- 
ize the  materials  used  in  manufacturing  plants.  Prob- 
ably all  factories  make  some  efforts  in  this  direction. 
But  very  little  has  been  done  towards  standardizing 
the  use  of  proper  definitions.  The  purpose  of  enforc- 
ing the  use  of  these  is: 

1.  To   secure   uniformity  in  naming  and  defining 

all  materials,  articles,  and  supplies. 

2.  To  avoid  confusion  and  misunderstanding. 

3.  To  familiarize  employees  with  the  material  used 

in  making  the  product  of  a  factory  and  with 
the  supplies  used  and  consumed. 

4.  To  reduce  the  variety  of  materials. 

5.  To  reduce  the  variety  of  supplies. 


40  STORING 

Illustrations  of  Definitions 

In  figures  3  to  7  are  given  several  illustrations  of 
sheets  of  definitions  which  have  proven  very  success- 


KOUNO. 


4] 

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t 

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1 

V 

J 

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J 

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isg. 

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we 

—  »- 

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£v; 

eS 

WASHERS 


DEFINITION! 


The  term  "Washer"  shall  be  understood  as  indicating  a  thin  part  or  piece  with  a  hole  in  it  The 
part  and  hole  are  usually  round  in  form  although  both  or  either  may  be  rectangular  or  some  irregular 
shape. 

The  term  "Washer"  shall  not  be  applied  to  a  thin  part  or  piece  that  does  not  have  a  hole  in  it. 
Such  parts  shall  be  known  as  "Disks"  or  "Plates"  depending  upon  their  shape,  and  no  part  shall  be 
known  as  a  washer  where  the  thickness  is  greater  than  the  diameter  of  the  hole  or  inside 
diameter  of  the  part.  Such  parts  shall  be  known  as  Bushings,  Collars,  etc.  which  are  properly  described 
under  their  several  headings. 

Several  forms  of  washers  are  shown  above,  also  the  general  method  of  dimensioning  that  should  be 
followed  on  all  drawings. 

Washers  are  used  for  many  purposes,  such  as  taking  up  space,  to  insure  a  better  bearing  for  bolt 
head  or  nut,  insulation,  etc.  If  made  of  a  yielding  material,  they  may  be  used  to  make  a  tight  joint 
between  bolt,  nut  and  part  it  is  in  contact  with. . 

They  are  made  in  an  endless  variety  of  forms  and  from  many  classes  of  material. 

In  specifying  plain  round  washers,  not  standard,  the  dimensions  should  be  given  in  the 
following  order,  viz.,  Inside  Diameter,  Outside  Diameter,  Thickness  and  Material. 

In  specifying  "Narrow  Gauge"  standard  washers,  state  diameter  of  bolt  used  on,  material  and 
state  "Narrow  Gauge." 

For  dimensions  of  U.  S.  standard  and  standard  narrow  gauge  round  iron  washers,  see  table 
"Dimensions  of  Standard  Wrought  Iron  Washers"  #5209  Data  Class. 

For  list  of  iron  washers  giving  Part  Numbers  see  #1128  Table  Class. 

For  dimensions  of  Standard  round  brass  and  copper  washers,  see  table  "Dimensions  of 
Standard  Brass  and  Copper  Washers"  #5211  Data  Class. 

The  term  "Standard"  when  applied  to  brass  and  copper  washers  refers  only  to  the  Otis 
Elevator  Company's  Standard  as  there  are  no  commercial  standard  brass  and  copper  washers. 

For  list  of  brass  and  copper  washers  giving  Part  Numbers  see  #1127  #1129  and  #1201,  Table  Class, 

In  specifying  rectangular  washers,  the  dimensions  should  be  given  in  the  following  order,  viz.,1 
Diameter  of  Hole,  Thickness,  Width  and  Length. 

SPECIFICATIONS  FOR  PURCHASE  ORDERS  AND  STOCK  LEDGER  SHEETS. 

Quantity,  Bolt  Diameter,  Standard  Iron  Cut  Washers. 

Example:    20  IDS.  (approximately  500)  }  '  standard  iron  cut  washers,  or 

25  Ibs.  (approximately  500)  }  *  standard  iron  cut  washers,  "Narrow  Gau^e." 

FIGURE  No.  3  —  Standard  definition  for  washers. 


SPECIFICATIONS  AND  STANDARDIZATION       41 

ful  and  of  great  benefit  in  securing  the  objects  out- 
lined.    In  all  establishments  of  sufficient  magnitude 


•-.D 


IRON  RIVETS 


DEFINITION. 

A  rivet  is  a  pin  for  holding  two  or  more  plates  or  pieces  together.  A  head  is  usually  formed  on  one' 
end  when  the  rivet  is  made;  the  other  end  is  upset,  or  headed,  after  rivet  is  put  in  place,  and  draws 
the  riveted  members  close  together. 

Iron  rivets  are  made  with  many  different  style  heads.  Requirement*  are  to  be  confined  to 
countersunk  and  button  heads  wherever  possible. 

For  length  of  rivet  before  forming  head,  see  table  "Rivet  Lengths  for  Forming  Round  and  Counter- 
sunk Heads"  #5210  Data  Class.  For  list  of  iron  rivets  giving  Part  Numbers,  see  #1178  Table  Class. 

The  included  angle  of  head  of  countersunk  head  rivet  is  70  degrees. 

The  material  used  in  the  manufacture  of  "iron  rivets"  is  Extra  Soft  Steel  and  must  have  a  tensile 
strength  of  not  less  than  50000  pounds  per  square  inch. 

SPECIFICATIONS  FOR  PURCHASE  ORDERS  AND  STOCK  LEDGER  SHEETS. 

(Countersunk 
Button  \  Head  Iron  Rivets. 

Flat 
Example :    200  IDS.  (approximately  2000)  f  '  x  2 J  '  button  head  iron  rivets. 

Note: — For  number  of  iron  rivets  in  100  Ibs.  see  table  on  page  12. 

SPECIFICATIONS  FOR  STOCK  OR  SHOP  LISTS  AND  REQUISITIONS. 

f  Countersunk      1 
Quantity,  Diam.  x  Length  {  Button  \  Head  Iron  Rivets. 

[Flat 
Example:    25— | '  x  2J '  countersunk  head  iron  rivets. 

SPECIFICATIONS  FOR  DRAWINGS  AND  ENGINEERING  PART  LISTS. 

(Countersunk         1 
Button  }  Head  Iron  Rivets.  Part  Number. 

Flat 
Example:    25— f  x  2J"  countersunk  head  iron  rivets,  Part  No.  7895. 

FIGUKE  No.  4  —  Standard  definition  for  rivets. 

some  similar  scheme  should  be  in  force.     There  are 
certain  points  in  connection  with  the  illustration  which 


42 


STORING 


need  some  explanation,  although  their  general  import 
can  be  readily  comprehended  by  a  careful  perusal. 


7 

Va 

j 

—  *-*\ 

BRUSHES 
DEFINITION: 

The  term  "Brush"  shall  be  understood  as  indicating  an  electrical  conductor  bearing  against  a, 
surface  for  the  purpose  of  maintaining  a  continuous  electrical  sliding  contact  between  the  same.  There 
must  be  relative  motion  between  the  brush  and  surface  such  that  the  said  parts  slide  over  each  other 
in  normal  operation,  but  this  contact  must  be  maintained  when  such  motion  ceases. 

They  are  made  in  an  endless  variety  of  forms,  and  from  a  variety  of  materials. 

The  material  will  be  generally  understood  as  being  carbon  or  graphite,  or  a  combination  of  both, 
either  with  or  without  a  given  percentage  of  metal,  depending  upon  the  specifications. 

Several  forms  of  brushes  are  shown  above,  also  the  method  of  •dimensioning  that  should  be  followed 
on  all  drawings. 

When  specifying  brushes,  they  must  always  be  specified  per  O.  E.  Grade  numbers  as  shown  on 
£433-B  Data  Class  and  #973-B  Specifications. 

When  ordering  brushes,  reference  must  always  be  made  to  a  drawing  or  sketch. 

SPECIFICATIONS  FOR  PURCHASE  ORDERS  AND  STOCK  LEDGER  SHEETS. 

Be  guided  by  drawings  and  specifications  when  making  Purchase  Orders  and  Stock  Ledger  Sheets, 
using  in  addition  to  description,  the  Part  Number. 

SPECIFICATIONS  FOR  STOCK  OR  SHOP  LISTS  AND  REQUISITIONS. 

Be  guided  by  drawings  and  specifications  when  making  Stock  or  Shop  Lists  and  Requisitions,  using 
in  addition  to  description,  the  Part  Number, 

SPECIFICATIONS  FOR  DRAWINGS  AND  ENGINEERING  PART  LISTS. 

Quantity,  Name  of  Part,  Class,  O.  E.  Grade  Number,  Part  Number,  Drawing  Number: 

Example:    25  motor  brushes  complete,  class  flO,  O.  E.  grade  J7.  Part  No.  12340,  No.  5047 
E.D. 

FIGURE  No.  5  —  Method  of  defining  carbon  brushes. 

Figures  3,  4,  and  5  illustrate  the  method  of  denning 
well-known  small  articles.  They  indicate  how  these 
should  be  specified  on  the  storerooms  perpetual  in- 
ventory or  ledger  sheets,  which  should  in  all  cases 


SPECIFICATIONS  AND  STANDARDIZATION       43 

correspond  with  the  specification  on  the  storeroom 
requisitions  and  on  the  purchasing  agent's  orders. 
It  will  be  noticed  that  when  specified  on  drawings 


STUDS-STEEL  AND  IRON 


Part 

Number 

D           L 

u 

L, 

Type 

Material 

Remarka 

12162 

r     iA* 

p 

_ 

A 

C.R.S. 

#093  SW 

80806 

A'      U* 

A* 

A' 

A 

C.R.S. 

11696  E.  D. 

85237 

A'     IP 

Full  iei 

igth^ 

C 

C.  R.  S. 

183  MA.    (#10-32  6ie) 

89760 

A'      4A' 

1' 

C 

C.  R.S. 

194  MA.    (|  10-32  Die) 

89467 

*'      1A* 

P 

r 

B 

C.  R.S. 

1194  SW.    (f  12-24  Die) 

801867 

.242'        1|' 

A* 

i' 

A 

W.I. 

/559E.  D.    (#14-20  Die) 

801042 

.242'        I}' 

A' 

l* 

A 

C.  R.S. 

12095-AE.  D.    (#14-20  Die) 

801037 

.242'       2}' 

!' 

p 

C 

C.  R.  S. 

Part  List  1485.    (#14-20  Die) 

80807 

.242'       2|' 

FuUlei 

igth 

C 

C.R.S. 

#2427-8  E.D.    (#14-20  Die).    Weight  rod 

801038 

.242'       3' 

1 

p 

C 

C.R.S. 

Part  List  1485.    (#14-20  Die) 

801416 

.242'       3H* 

1 

!' 

A 

C.  R.S, 

#436  SW.    (#14-20  Die) 

800127 

.242'       4' 

| 

C 

C.  R.  S. 

Part  List  A-54-CR.    (#14-20  Die) 

80808 

.242'        4' 

FuU  length 

A 

C.  R.S. 

#1253-B  E.  D.    (#14-29  Die) 

800369 

.242'        5i' 

i 

P 

A 

C.  R.S. 

#97  MA.    (#14-20  Die) 

87125 

j        r 

| 

A 

C.  R.  S. 

#2873-B  E.  D. 

802290 

j      n' 

i 



A 

C.  R.  S. 

#2385-8  E.  D.    (#14-20  Die) 

286 

}           2' 

1 



B 

C.  R.  S. 

#B-126  CR  Special,  one  end  slotted 

80809 

J           2' 

1 

II' 

A 

C.R.S. 

#2314  E.  D.    Special,  see  drawing 

80810 

J           2J' 

i 

p 

C 

C.  R.  S. 

#3253  E.  D. 

84548 

J           2J' 

i 

i' 

C 

C.R.S. 

#B-225N.    Special,  copper  plated 

801322 

t           3|' 

i 

r 

— 

C.  R.S. 

#418  SW.    (#14-20  Die) 

80811 

J           4' 

A* 

i' 

B 

C.  R.S. 

#1619  E.-  D. 

S01040 

A'       11* 

A* 

p 

A 

C.  R.S. 

#2135-AE.  D.    (#16-20  Die) 

802291 

A'       2' 

A*                0» 

1A* 

1  JC* 

C 
^ 

M.S. 
M.  S. 

#106  SW 
#106  SW     Special,  sherardized 

80812 

* 

A'       2|* 

*rt 

i' 

r 

C 

C.  R.  S. 

#3129  E.  D. 

80813 

A*       21' 

r 

p 

A 

C.R.S. 

#3128  E.  D.    Obsolete,  use  #89437 

89437 

A*       2|' 

p 

p 

C 

C.  R.S. 

#93  MA 

89603 

A*       2|' 

!' 

r 

C 

C.R.S. 

Part  List  A-65  SW.    (#18-18  Die) 

80814 

A*       3' 

Full  k 

ngth 

A 

C.R.S. 

#3827  E.  D. 

89438 

A'       3J' 

p 

P 

C 

C.R.S. 

#93  MA 

80815 

A*       5' 

A* 

2' 

C 

CR.S. 

#3399  E.  D.    (#18-18  Die) 

801790 

I 

H' 

A' 

mm 

A 

C.  R.S. 

#4526  E.  D. 

801704 

1? 



A 

C.R.S. 

#4561  E.D. 

801705 

i 

H' 

1' 



C 

C.R.S. 

#10737  Sketch 

801839 

If 

A' 

— 

A 

W.I. 

#3523-AE.  D.    Special,  one  end  drilled  (or  cotter  pin 

84849 

} 

2' 

1' 

— 

A 

C.  R.  S. 

#4030  E.  D.    Special,  one  end  drilled 

801732 

} 

2A' 

r 

1* 

C 

C.  R.& 

#74  SW 

801437 

i 

21' 

p 

1' 

C 

M.  S 

Part  List  1962. 

80817 

i 

2J' 

1A' 

1A* 

C 

Forged  Steel 

#109  SW  Special,  sherardized,  one  end  drilled  for  cotte 

rpin 

12039 

2P 

IP 

It' 

A 

C.R.S. 

#B-5CR 

80816 

1 

2|' 

IA* 

1A' 

C 

Forged  Steel 

#109  SW     Special,  one  end  drilled  for  cotter  pin 

18977 

1 

2  A" 

p 

A 

C.  R.S. 

#593-AE.D.    Special,  one  end  drilled  for  cotter  pin. 

M.O.S. 

80818 

1 

21' 

Full  k 

«gth 

C 

CR.S. 

#4382-8  E.  D. 

80819 

I 

2P 

1" 

P 

C 

M.S. 

#3326-A  E.  D. 

18978 

i 

21' 

A 

C.R.S. 

#1725-AE.  D.    Special,  one  end  drilled  for  cotter  pin. 

M.O.S. 

80820 

1 

2P 

i' 

IA* 

C 

CR.S. 

#109  Duplex  motor 

800909 

1 

2i' 

B 

C.R.S. 

#3596  E.  D. 

87231 

i 

3f 

1* 

1A' 

C 

CR.S. 

Part  List  A-87SW 

80821 

i 

31' 

p 

P 

C 

C.R.S. 

#3326-8  E.D. 

89607 

i 

31' 

»• 

U' 

C 

CR.S. 

Part  List  108  SW 

80822 

i 

31' 

p 

P 

C 

C.  R.S. 

#3119  E.  D. 

ri« 

I          3|' 

1A' 

1A/ 

Q 

CR.S 

Part  List  8-66  SW 

FIGURE  No.  6  —  Method  of  tabulating  part  numbers. 


44 


STORING 
DEFINITION  OF  PARTS 


•bore  definition  that  is  less  than  12'  long  shall  be  known  as  a 
"Connector."  In  the  case  of  large  cables  the  smaller  insulated 
cables  may  be  twisted  together  forming  one  Large  cable  and  then 


be  further  insulated  by  an  additional  wrapping. 
The  term  cable  should  not  be  applied  to  hoisting  ropes 
ropes,  etc.,  these  will  be  denned  under  their  proper 


CASE— A  i 

:  also  "Housing." 
Apply  a  prefix  to  the  term,  indicating  locatk» 


Specification    should    state*    Quantity    Size,   Name  of 
Material.  Part  Number. 

1—  J261-32  cable,  Copper,  Part  No.  8798. 
1—  #20-36  cable.  Copper,  Part  No.  8897. 


Part, 


CAGE— A  skeleton  frame  to  limit  the  motion  of  a  loose  piece  or 
loose  pieces,  as  ball  cages,  valve  cage,  etc. 
Apply  a  prefix  to  the  term  indicating  function. 

Specification  should  state:    Quantity,  Name  of  Part,  Material. 
Part  Number. 

Example:    4— thrust  bearing  ball  cages.  Brass,  Part  No.  7807. 
1 — 5  J  *  valve  cage.  Bronze,  Part  No.  2073. 

CALK— This  term  will  be  understood  as  indicating  an  operation  to 
•tighten  a  joint  formed  by  overlapping  metal  plates,  or  rimjlar 
parts,  by  driving  the  edge  of  one  plate  hard  down  on  or  into 
the  surface  of  the  other  with  a  tool  called  a  "Calking  Iron." 

CAM— A  rotating  or  sliding  piece  of  any  precise  shape,  or  a  pro- 
jection of  definite  shape,  as  on  a  wheel,  either  for  imparting  de- 
sired particular  movement  to  a  roller  moving  against  its  edge, 
to  a  pin  free  to  move  in  a  groove  on  its  face,  etc.,  or  for  receiving 
motion  from  such  a  roller,  pin,  etc. 
Apply  a  prefix  to  the  term  indicating  location. 

Specification  should  state:    Quantity,  Name  -of  Part,  Material, 
Part  Number. 

Example:    3— limit  switch  cams,  C.  I.,  Part  No.  3724. 
1— rheostat  cam,  C.  I..  Part  No.  8737. 
4 — switch  arm  cams,  Brass,  Part  No.  3235. 

CAP— This  term  will  be  understood  as  indicating  the  detachable 
portion  of  a  shaft  bearing  or  a  box,  when  used  as  a  receptacle 
for  a  stationary  pin,  shaft,  etc.,  either  directly  or  through  an 
intermediate  lining. 
Apply  a  prefix  to  the  term  indicating  function. 

Specification  should  state:    Quantity,  Name  of  Part,  Material. 
Part  Number. 

Example:    1— drum  shaft  bearing,  cap.  C.  I.,  Part  No.  8888. 
1— back  gear  stand  cap,  C.  I.,  Part  No.  9979. 
2— vibrator  shaft  box  caps,  C.  I.,  Part  No.  3797. 
a-brake  frame  caps,  C.  I..  Part  No.  2155. 

CAPSTAN — A  vertical  cleated  drum  or  cylinder  revolving  on  an  up- 
right spindle,  with  pawls  at  the  foot  of  the  drum,  and  surmounted 
by  a  drumhead  with  sockets  for  bars  or  levers.  It  is  much  used 
for  moving  or  raising  heavy  weights,  or  exerting  great  power  by 
traction  upon  a  rope  or  cable  passing  around  the  drum.  It  may 
be  operated  by  steam  or  electric  power,  or  by  means  of  capstan 
bars  pushed  by  hand. 

A  capstan  is  distinguished  from  a  windlass  in  that  a  windlass 
turns  on  a  horizontal  axis. 

CAR— This  term  wifl  be  understood  as  indicating  that  enclosed 
part  of  an  elevator  apparatus  in  which  the  passengers  or  freight 
are  placed. 
If  the  part  is  not  enclosed  it  win  be  termed  a  "Platform." 


Specification  should  state: 
Part  Number. 


Quantity,  Name 


Example:  1— worm  gear  case,  C.  »..  Part  Nc 
1— brake  magnet  case,  C.  I.,  Part 
1— stop  motion  case,  C.  I.,  Part  1 

CATCH— A  part  used  to  check,  retard,  stop  or  he 
parts  either  permanently  or  for  a  predetennin1 
The  term  catch  should  be  used  with  discre 
wherever  possible. 
Apply  a  prefix  to  the  term  indicating  function. 

Specification  should  state:    Quantity,  Name 
Part  Number. 

Example:  1 — contact  arm  catch,  Brass,  Par 
1— weight  lever  catch,  C.  I.,  Pan. 
1 — magnet  armature  catch,  C.  I., 


CENTER— This  term  has  been  erroneously  used 
cate  a  detachable  hub  for  wheels,  gears,  sheav 
The  use  of  this  term  must  be  avoided  in  the  f 
the  term  "Hub." 


CHAIN— This  term  will  be  understood  as  u 
links  or  rings,  connected  or  fitted  into  oc 
various  purposes,  as  a  support,  restrain,  or 
of  mechanical  power,  etc.    Chains  are  also  » 
weight."    Chains  are  made  in  many  forms  at 
Apply  a  prefix  to  the  term,  indicating  type  of 

Specification  should  state:    Quantity,  Size 
Material,  Part  Number. 

Example:  20  ft.  #10  Diamond  sprocket  chain,  S 
30  ft.  i'  bicycle  chain.  Steel,  Part 
40  ft.  i'  open  link  chain,  W.  I.,  Pai 
20  ft.  i '  sash  chain.  Brass,  Part  N 


CHAIR — A  block  or  plate  used  for  supporting  a 
time  securing  it  to  another  part. 
Avoid  the  use  of  this  term,  using  instead 
Catch,  Clamp,  etc.,  depending  upon  conditi 
of  Bracket,  Catch,  Clamp,  Etc. 

CHANNEL— This  term  will  b^  understood  a 
rolled  iron,  steel,  brass,  etc.,  having  a  gutter  t 

Specification   should   state:    Quantity,   Sir 
Material,  Part  Number. 

Example:    3— pcs.  8'  x  1111  channel,  Stes 
5— pcs.  6'  x  &f  channel.  Steel.  P 

Or  it  may  be  written:— 

3— pcs.  8'  x  lljf  fs  Steel.  Part  > 
5— pcs.  6'  x  Bf  (s  Steel,  Part  No 

CHECK  NUT— A  nut  screwed  down  hard  on  i 
from  slacking  back.  This  part  is  sometimes 
a  "Jam  Nut.  For  further  information  concer 
and  method  of  specifying,  see  #5036  Data  Cl 
For  dimensions  of  standard  check  nuts  see  #51 
For  list  of  standard  check  nuts  giving  Part 
and  11194  Table  Class, 


CARRIER— A  device  that  carries  or  drives,  as  the  traveling  part  of 
a  mechanism  or  system  directly  supporting  something  conveyed 
from  one  place  to  another.  This  term  must  not  be  applied  to 
a  single  part,  but  is  to  be  used  to  indicate  a  complete  apparatus, 
as  a  releasing  carrier,  etc. 
Apply  a  prefix  to  the  term  indicating  function. 

Specification  should  state:  Quantity,  Name  of  Part,  Part  Number. 
3-releasing  carriers,  Part  No.  673, 


CHEST—  This  term  -will  be  understood  as  indica 
tacle  or  box,  usually  for  holding  gas,  steam.  I 
steam  chest  for  an  engine,  or  water  chest  for  fa- 
Apply  a  prefix  to  the  term  indicating  functio. 


Specification  should  state: 
Part  Number. 


Quantity,  Name 


Example: 


1—5'  X  5'  water  chest.  C.  IM  Part> 
1—8'  x  10'  engine  steam  chest.  C 


FIGURE  No.  7  —  Method  of  defining  terms  used  in  connection  with  parts 
of  apparatus.    This  information  is  valuable  to  non-technical  men. 


SPECIFICATIONS  AND  STANDARDIZATION       45 

and  engineering  part  lists  the  "Part  number"  should 
be  given.  This  is  a  detail  which  it  is  not  necessary 
to  specify  on  a  purchase  order  because  it  would  have 
no  meaning  to  the  recipient  of  the  order.  It  is  infor- 
mation solely  for  the  members  of  the  organization 
and  enables  them  to  identify  the  article  with  the 
part  number. 

Figure  6  shows  in  what  manner  the  part  numbers 
are  tabulated.  The  purpose  of  this  table  is  clear  and 
needs  no  explanation. 

Figure  7  indicates  the  use  of  the  various  parts. 
This  sheet  gives  very  valuable  and  very  interesting 
information.  It  enables  all  employees  to  acquaint 
themselves  with  the  purpose  of  the  many  articles  used 
in  constructing  and  assembling  the  product  of  a 
factory.  In  this  respect  it  is  a  liberal  education. 

The  sheets  illustrated  in  Figures  3  to  7  should  be 
distributed  to  all  members  of  an  organization  whose 
duties  require  them  to  name  or  specify  any  material, 
and  should  be  kept  in  handy  binders  for  ready 
reference.  The  purpose  which  the  sheets  are  intended 
to  serve  will,  however,  be  defeated  if  they  are  not 
used.  This  is  the  one  defect  of  this  system.  They 
are  apt  to  be  treated  as  books  of  reference  for  use  when 
in  doubt,  and  too  often  are  not  referred  to  at  all, 
with  the  result  that  many  mistakes  are  made.  In 
spite  of  this  they  are  eminently  successful  and  a  rigid 
enforcement  of  their  use  would  make  them  completely 
so. 

What  the  Storeroom  can  do  in  Standardizing  Definitions 

The  discussion  in  this  chapter  has  been  confined  to 
schemes  and  efforts  which  are  general  in  their  nature; 


46  STORING 

that  is,  they  are  for  use  throughout  the  establishment 
and  are  not  of  storeroom  origin.  But  there  are  many 
organizations  which  are  not  of  sufficient  magnitude 
to  adopt  such  an  elaborate  scheme  and  perhaps  do 
not  care  to  incur  the  expense  which  it  entails.  Never- 
theless, their  need  is  just  as  insistent  as  that  of  the 
larger  concerns.  It  is  in  such  instances  as  this  that 
the  storeroom  can  render  inestimable  service.  It 
can  do  it  to  better  effect  than  any  other  department, 
because  it  is  the  medium  through  which  the  articles 
pass  and  it  has  both  the  acquaintance  with  the  physi- 
cal properties  of  the  article  by  daily  contact  and  the 
acquaintance  with  its  description  through  the  daily 
clerical  work  of  recording  and  stores  bookkeeping. 
Large  results  can  be  accomplished  by  the  storeroom 
if  the  problem  is  approached  in  the  right  manner  and 
grappled  with  in  a  systematic  way. 

It  is  not  contended  that  the  storekeeper  should  de- 
fine what  material  should  be  used  in  production  work. 
That  phase  of  manufacturing  must  be  left  to  the 
technical  staff.  It  has  probably  been  adopted  after 
exhaustive  and  extensive  experiments  have  determined 
its  suitability,  and  this  work  cannot  be  rendered 
nugatory  by  a  non-technical  man.  What  it  is  sug- 
gested the  storekeeper's  activities  should  cover  is  the 
proper  description  and  ordination  of  the  innumerable 
small  articles  which  form  a  composite  part  of  the 
product  of  the  factory. 

But  in  connection  with  all  supplies  and  small  tools 
the  storekeeper's  activities  may  take  on  a  wider  scope. 
In  many  establishments  it  may  be  wise  to  let  him  have 
the  deciding  voice  in  selecting  such  things  as  waste, 
brooms,  brushes,  all  kinds  of  packing  materials,  etc. 


SPECIFICATIONS  AND   STANDARDIZATION       47 

If  he  is  a  man  of  the  right  caliber,  with  common  sense 
and  discrimination,  he  can  keep  the  varieties  of  these 
used  around  the  plant  at  the  minimum.  It,  too, 
frequently  happens  that  personal  likes  and  dislikes 
are  allowed  to  influence  the  use  of  these  articles, 
with  the  result  that  entirely  too  many  come  into  use 
when  there  is  no  controlling  hand.  Many  instances 
have  come  to  the  writer's  attention  in  which  store- 
rooms were  carrying  many  styles  of  brooms  and 
several  varieties  of  waste  in  excess  of  actual  needs. 
The  storekeeper  has  these  things  lined  up  alongside 
each  other  in  his  racks  and  bins,  and  it  should  be- 
come apparent  to  him  before  it  does  to  any  one  else 
that  the  number  can  be  reduced. 

Obtaining  Proper  Definitions  and  Method  of  Using  Them 

It  is  not  assumed  that  a  storekeeper  could  from 
memory  give  the  correct  definition  of  every  article 
under  his  charge.  In  some  establishments  these  may 
run  into  thousands;  but  he  can  obtain  them,  and  it  is 
not  the  stupendous  task  that  the  number  would 
seem  to  indicate.  Much  information  can  be  obtained 
from  catalogues,  but  this  source  should  be  used  to 
collect  general  information  regarding  an  article,  that 
is,  the  number  of  sizes  in  which  it  is  made,  the  differ- 
ent styles,  etc.,  rather  than  to  secure  the  correct 
definition. 

It  is  necessary  to  approach  the  manufacturers  and 
get  their  technical  staff  to  specify  correctly  many 
new  items  and  quite  often  some  of  the  old  ones.  There 
is  an  extensive  movement  among  manufacturers  of 
many  products  to  standardize  the  specifications  of 
their  output.  When  the  correct  definition  has  been 


48  STORING 

obtained  a  permanent  record  should  be  made  of  it 
in  the  manner  indicated  in  Figure  8.  By  adopting 
this  course  the  whole  range  of  articles  in  the  store- 
room can  be  covered  within  a  reasonable  time  and 
without  disturbance  of  the  routine  work.  If  it  is 
found  necessary,  in  very  large  storerooms,  a  man  can 
be  designated  to  standardize  definitions  and  devote 
his  whole  time  to  it  until  completed. 


DEFINITION:. 


FIGURE  No.  8  —  Card  for  recording  standard  definitions.    Size  4x6  inches. 

If  separate  cards  are  not  kept  on  which  the  defi- 
nitions can  be  recorded  they  can  be  specified  on  the 
perpetual  inventory  cards  or  sheets,  as  shown  in 
Figure  9.  Constant  visualization  of  these  defini- 
tions in  their  proper  form  ultimately  compels  the 
use  of  them.  There  is  one  great  advantage  in  this 
scheme  in  that  the  definition  is  always  in  view  of  the 
person  writing  up  a  requisition  for  additional  material 
and  renders  it  almost  impossible  to  use  incorrect 
descriptions.  The  preceding  discussion  covers  some 


SPECIFICATIONS   AND   STANDARDIZATION       49 


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50  STORING 

of  the  main  features  of  a  storekeeper's  activities 
through  which  he  can  render  signal  and  valuable 
service.  There  are  inevitably  many  minor  details 
which  would  suggest  themselves  to  an  intelligent  and 
resourceful  man.  The  stores  department  is  between 
the  buyer  and  the  user,  and  in  this  position  it  can  be 
of  material  assistance  in  coordinating  the  activities 
of  the  purchasing  and  production  departments.  In 
manufacturing  establishments  it  is  not  an  easy  matter 
to  get  all  foremen  to  specify  correctly  each  article 
when  they  make  requisitions  to  draw  material  from 
the  stores.  Very  considerable  improvement  could 
be  effected  over  the  conditions  existing  in  many  plants. 
Even  if  requisitions  come  into  the  stores  with  incor- 
rect or  inadequate  definitions,  the  stores  department 
should  not  repeat  these  delinquencies  in  writing  up 
the  requisitions,  which  go  to  the  purchasing  depart- 
ment. 


CHAPTER  V 

LOCATION  AND  EQUIPMENT  OF  STOREROOM 

Location 

INDIVIDUAL  circumstances  will  largely  govern 
the  amount  of  space  necessary,  and  space  require- 
ments will  frequently  determine  the  location.  At 
one  time  it  was  considered  necessary  for  supply  houses 
handling  similar  lines  of  goods  to  concentrate  in  close 
proximity  to  each  other  and  the  practice  is  still  very 
largely  followed.  But  this  theory  is  losing  adherents, 
because  of  the  improvement  in  transportation  facili- 
ties and  to  some  extent  because  of  the  success  achieved 
by  the  large  terminal  warehouses,  which  are  being 
used  as  receiving  and  distributing  points  for  many 
classes  of  goods.  It  is  apparent  that  these  must  show 
economic  advantages  over  warehouses  located  in  a 
congested  section  of  a  city. 

Better  transportation  facilities  are  also  largely  re- 
sponsible for  the  changed  conditions  in  municipal 
storing.  This  and  the  better  equipment  now  obtain- 
able have  had  their  influence  in  effecting  the  improve- 
ments which  have  taken  place.  In  some  large  cities 
it  has  been  found  practicable  to  reduce  the  number 
of  stores  fifty  per  cent.  In  these  cases  it  has  effected 
considerable  saving  in  the  amount  of  help  necessary 
to  operate  the  stores,  reducing  this  item  of  expense 
nearly  to  the  same  extent  as  the  reduction  in  the 
number  of  storerooms. 


52  STORING 

The  problems  connected  with  the  location  of  store- 
rooms in  manufacturing  plants  are  multitudinous, 
and  the  solution  of  them  involves  consideration  of 
many  features  which  are  not  met  with  elsewhere. 
Well-selected  locations  will  save  much  physical  effort 
and  be  a  help  in  keeping  down  costs,  which  is  the 
great  desideratum  in  manufacturing  operations. 

No  set  rules  can  be  laid  down,  because  the  con- 
ditions prevailing  in  establishments  vary  greatly  and 
each  one  needs  very  close  study.  It  may  seem  fit 
from  the  result  of  these  studies  to  have  one  central 
storeroom  furnishing  to  each  department  its  supplies 
by  means  of  conveyors  or  transveyors.  In  other 
cases  it  may  be  decided  to  have  separate  storerooms 
in  each  department,  with  some  form  of  centralized 
control.  The  facilities  which  exist  to-day  for  trans- 
porting goods  between  departments  have  modified 
the  ideas  which  at  one  time  prevailed  regarding  store- 
room locations.  These  facilities  will  be  discussed 
later  on  in  this  chapter. 

Proportion 

In  any  manufacturing  establishment  the  apportion- 
ment of  space  for  storage  purposes  is  a  matter  of  some 
importance.  The  ideal  condition  would  be  to  have  no 
vacant  storage  space  and  at  the  same  time  to  have  no 
congestion  or  overcrowding. 

This  condition  is  almost  impossible  of  realization, 
but  every  effort  should  be  made  to  get  as  near  as  pos- 
sible to  it.  Vacant  storage  space  is  a  dead  loss,  but 
nearly  every  storeroom  has  some  when  stocks  are  at 
the  minimum  point.  Considerable  improvement  has 
been  effected  by  the  flexibility  of  the  equipment  which 


LOCATION,   EQUIPMENT  OF  STOREROOM         53 

is  now  obtainable.  A  description  of  this  will  be  taken 
up  later  in  this  chapter.  The  reverse  of  excessive 
space  is  a  too  limited  area.  This  means  congestion 
and  is  perhaps  worse  from  an  economic  viewpoint. 
It  frequently  means  handling  goods  more  often  than 
should  be  the  case,  entailing  not  only  extra  expense 
but  liability  to  damage,  errors  in  counting  and  check- 
ing, loss  of  time  in  making  deliveries,  etc. 


FIGURE  No.  10 
Showing  method  of  lettering  and  numbering  aisles. 

Equipment 

Nothing  is  more  conducive  to  economical  and  effi- 
cient storage  than  proper  equipment.  This  is  fixed 
and  movable  in  character  and  some  types  of  each 
kind  will  be  dealt  with  in  detail.  It  would  be  mani- 
festly impossible  to  cover  everything  required  for  stor- 
ing all  kinds  of  material;  the  discussion,  therefore, 
will  be  confined  to  such  equipment  as  is  needed  for  a 
general  line  of  supplies  and  raw  material. 

Generally  speaking,  too  little  attention  is  paid  to 


54 


STORING 


the  proper  housing  and  arrangement  of  stores.  In  the 
majority  of  industrial  plants  large  sums  are  constantly 
being  expended  in  developing  and  perfecting  machinery 
and  tools  for  obtaining  quicker  and  better  results 
in  the  shop.  Some  establishments  will  be  prodigal 
in  this  respect,  but  a  niggardly  policy  will  prevail  in 
stores  equipment  resulting  in  loosely  kept  and  poorly 
arranged  stores.  Damage,  deterioration,  and  disorder 
follow,  while  the  untidy  appearance  causes  slackness 
and  low  efficiency. 


FIGURE  No.  11 

Illustrates  the  arrangement  of  various  sizes  of  compartments  from  the 
same  size  units.  The  first  assembly  is  arranged  with  fronts  for  bins,  while 
the  second  shows  plain  shelves  fitted  with  tote  boxes. 

Bins  and  Shelving 

Practically  every  storeroom  needs  some  kind  of 
racks,  bins,  and  shelving.  These  are  just  as  essential 
as  correspondence  files  in  an  office.  It  would  not  be 
deemed  possible  to  operate  a  bank  without  proper 
receptacles  for  the  different  forms  of  money,  or  to 
run  an  office  without  a  system  for  taking  care  of  its 


LOCATION,   EQUIPMENT  OF  STOREROOM        55 

records,  so  that  they  are  quickly  available  for  refer- 
ence. Without  these,  banks  and  offices  would  be 
working  in  confusion.  Yet,  frequently  unnoticed, 
many  storerooms  are  working  in  confusion,  because 
of  lack  of  the  right  equipment.  It  has  been  empha- 
sized that  everything  in  storage  is  wealth,  and  every 
storekeeper  should 
consider  his  stock 
in  the  same  manner 
as  he  would  if  it 
consisted  of  pen- 
nies, nickels,  and 
dimes. 

If  the  value  .of 
every  foot  of  stor- 
age space  were  de- 
termined on  the 
lines  laid  down  in 
Chapter  Two,  the 
great  advantage  of 
flexible  steel  equip- 
ment would  be  ap- 
parent. With  this 
it  is  possible  to  do 
almost  anything  in 
the  way  of  extend- 
ing or  contracting  the  receptacles  formed  by  them. 
If,  for  instance,  several  sizes  of  rivets  are  being  carried 
and  it  is  desired  to  discontinue  one  size  or  add  one, 
either  change  can  be  made  without  disturbing  the 
proper  sequence  of  sizes  and  usually  without  much 
disturbance  to  the  existing  stock. 

Steel  equipment  can  be  had  in  many  forms,  and  a 


FIGURE  No.  12 

An  excellent  type  of  bin  extending  full  height 
of  room  if  necessary,  with  lower  part  arranged 
for  larger  and  heavier  goods. 


56 


STORING 


description  of  some  of  them  will  be  given.  The 
reader  is  referred  to  the  illustrations  shown  through- 
out this  chapter  for  further  details  and  for  the  pur- 
poses for  which  they  are  used.  In  some  stores  it  may 
be  necessary  to  use  lockers  for  small  and  valuable 


FIGURE  No.  13 
Showing  assemblies  of  a  lower  type  arranged  so  as  not  to  obstruct  the  light. 

articles  and  in  some  instances  special  construction 
of  bins  may  be  required,  but  as  a  rule  most  of  the 
material  kept  in  bins  or  racks  can  be  stored  in  one  of 
three  types.  These  are  known  as  the  closed  type, 
open  type,  or  rack  type  of  receptacle. 

Any  of  these  types  can  be  secured  in  the  unit  system 


LOCATION,   EQUIPMENT   OF  STOREROOM         57 

of  construction,  which  permits  of  great  flexibility. 
That  is,  the  unit  can  be  extended  or  contracted  at 
will,  within  the  limits  of  the  adjustment  spaces.  These 
are  arranged  every  three  inches  vertically  and  ap- 
proximately every  six  inches  horizontally.  The  par- 
titions or  dividers  provide  for  the  greatest  economy 


FIGURE  No.  14 

Showing  wide  aisle  to  permit  drawing  long  articles  from  bins  and  also  the 
passage  of  large  trucks. 

of  available  storage  space.  It  is  computed  that  the 
use  of  these  effects  a  saving  in  storage  space  of  30 
per  cent  over  the  ordinary  type  of  wooden  bins  and 
shelving.  Further  advantages  are  secured  by  the 
simplicity  of  construction,  which  makes  erection  so 
easy  that  any  handy  man,  with  only  a  screw  driver, 


58 


STORING 


can  assemble  and  erect  them,  or  make  such  changes 
as  may  be  desired  or  caused  by  variations  in  stock. 
There  are  many  other  advantageous  points,  and  one 
which  may  be  mentioned  is  the  additional  protection 
from  fire  over  the  wooden  construction.  Even  if 
the  building  itself  is  of  fire-proof  construction  and 

is  equipped  with 
wooden  bins  and 
shelving,  the  risk 
is  much  greater 
than  if  these  were 
steel. 

The  Closed  Type  of 
Bins 

This  type  is  made 
up  in  the  following 
manner.  The  flat 
steel  backs  extend 
the  full  height  and 
full  length  of  as- 
semblies. These 
backs  act  as  divid- 

FIGURE  No.  15  .  ,,         ,  .      . 

An  illustration  of  the  flexibility  in  arranging  m§  Walls  when  li  1S 

the  sizes  of  bins.  These  are  much  larger  than  a  double-face  as- 
others  shown  to  take  care  of  castings.  *,  -,  rm 

sembly.  The  up- 
rights are  attached  to  the  backs  at  right  angles  with 
stove  bolts.  There  are  flanges  on  the  uprights  punched 
with  holes  to  correspond  with  holes  in  the  backs,  so 
all  that  is  necessary  is  to  insert  and  tighten  up  the 
bolts.  Both  the  uprights  and  backs  are  punched  for 
the  attachment  of  shelving.  The  shelving  is  then 
connected  with  the  uprights  and  backs  with  stove 


LOCATION,   EQUIPMENT  OF  STOREROOM        59 


FIGURE  No.  16 
Showing  details  of  construction  of  closed  type  of  bins. 


60 


STORING 


bolts.    This  method  of  construction  distributes  the  load 
on  the  shelves  between  the  uprights  and  the  back. 

After  erection,  as  described  in  the  last  paragraph, 
we  have  shelving  inclosed  on  three  sides  and  spaced 
practically  any  distance  apart  within  a  range  of  three 
inches.  These  shelves  can  be  promptly  converted 

into  bins  by  simply 
attaching  a  bin  front 
in  connection  with 
the  front  face  of  the 
shelves.  This  ar- 
rangement permits 
part  of  an  assembly 
to  be  used  as  bins 
while  part  can  re- 
main as  shelves. 

It  will  be  observed 
from  the  description 
given  that  this  form  of 
construction  provides 
absolute  rigidity,  as 
the  bin  fronts  and 
shelves  are  bolted  to 
the  frames,  but  at 


FIGURE  No.  17 

These  are  plain  shelves;  if  the  back  was 
omitted,  the  assembly  would  be  what  is 
known  as  "open  shelving."  Note  the 
weights  which  can  be  carried. 


the  same  time  does  not  prevent  shelves  being  con- 
verted into  bins,  or  bins  into  shelves.  Neither  does 
it  prevent  the  spacing  adjustment  of  shelves  and 
dividers  that  may  be  necessary  to  accommodate  the 
receptacles  to  the  changes  in  bulk  of  the  contents. 

Open  Shelving 

The  term  "open  shelving"  is  used  to  designate  the 
type  of  construction  which  has  no  backs  to  the  shelves, 


LOCATION,   EQUIPMENT  OF  STOREROOM         61 

enabling  the  helpers  to  take  material  from  either  side 
of  the  assembly. 

The  shelf  is  formed  from  one  piece  of  sheet  steel 
with  edges  turned  on  all  four  sides.  The  front  face 
of  each  shelf  is  attached  to  the  upright  with  four  bolts. 


FIGURE  No.  18 

When  fronts  are  attached  to  the  shelves  they  are 
converted  into  bins.  This  assembly  is  carrying 
more  than  15,000  pounds.  The  two  shelves  with- 
out fronts  are  carrying  200  pounds  per  square  foot. 

This  method  of  fastening  provides  for  any  lateral 
thrust,  as  it  acts  as  a  knee  brace.  Each  shelf  being 
attached  in  this  way  makes  the  entire  assembly  abso- 
lutely rigid.  The  uprights  are  formed  from  one  piece 
of  sheet  steel,  having  the  front  face  punched  with 


62  STORING 

holes,  permitting  a  three-inch  range  of  adjustment. 
Both  faces  of  the  shelves  are  alike,  and  the  system  of 
fastening  these  to  the  uprights  and  the  design  of  the 
assembly  makes  it  self-anchoring. 


FIGURE  No.  19 

An  excellent  type  of  closed  rack  which  can  be  used  for  drill  rods  and  similar 
material  of  uniform  length. 


Reference  to  the  illustrations  will  demonstrate  that 
the  open  shelving  consists  simply  of  shelves  and 
uprights,  but  these  shelves  can  be  converted  into  bins 
in  the  same  manner  as  the  closed  type  by  simply 
attaching  the  bin  fronts.  The  unit  principle  is  ad- 


LOCATION,   EQUIPMENT  OF  STOREROOM         63 

hered  to  and  these  units  can  be  made  to  bear  a  proper 
proportion  to  the  class  of  goods  being  stored. 
Racks 

Many  kinds  of  material  can  be  stored  to  better 
advantage  in  racks,  avoiding  the  use  of  solid  dividers 
or  uprights.  There  is  no  limit  to  the  depth  of  the 
racks,  and  they  can  be  used  for  babbitt  metal,  drill 
rods,  moldings,  lum- 
ber, sheet  metal, 
tubes,  etc. 

The  construction 
of  these  racks  con- 
sists of  steel  tee 
uprights  with  shelves 
having  specially 
formed  edges,  which 
are  attached  to  the 

uprights   in    such   a  FlGURE  No>  2o 

manner  as  to  make  New  Britain  stock  ick. 

the     assembled    rack        Rack  for  storing  bars,  rods  and  tubes.   Very 

self -anchoring      The  heayy loads  can  be  Placed-  on  tnese  racks  and 

*'  '    the  material  is  very  accessible. 

formation  of   the 

edge  of  the  shelves  and  the  manner  of  their  attach- 
ment to  the  uprights  forms  a  knee  brace  and  provides 
for  any  lateral  thrust.  Each  shelf  has  four  of  these 
knee  braces,  and  this  renders  the  assembly,  when  com- 
pletely erected,  absolutely  rigid. 

With  all  of  the  types  of  closed  and  open  shelving 
and  racks  already  described,  slotted  holes  are  pro- 
vided for  attaching  card  holders. 

Another  type  of  rack  suitable  for  heavy  loading 
is  illustrated  in  Figure  20.  This  is  designed  for  the 
economical  and  convenient  storing  of  heavy  bars  and 


64 


STORING 


rods.  The  unit  idea  is  carried  out  in  its  construction. 
This  permits  of  the  rack  being  easily  and  completely 
knocked  down  and  reerected  in  another  location,  with 
the  minimum  amount  of  work.  It  also  enables  the 
rack  to  be  expanded  or  contracted  to  meet  practically 
any  requirements.  The  rack  shown  in  the 
illustrations  is  arranged  so  that  changes 
in  height  can  be  made  in  multiples  of  ten 
inches  and  the  posts  are  spaced  47  inches 
apart.  These  dimensions  can  be  in- 
creased or  decreased  almost  at  will  to 
accommodate  material  from  12  to  30 
feet  long.  It  is  well  to  have  an  over- 
hang, as  it  distributes  the  load  uniformly 
and  facilitates  loading  and  unloading 
the  rack. 

If  enough  spaces  are  provided  there 
need  not  be  any  undue  mixing  of  sizes, 
which  eliminates  handling  in  getting  at 
the  desired  size.  One  big  advantage 
gained  in  using  this  type  of  rack  is  that 
the  bars  can  be  taken  from  the  front. 
The  construe-  jn  ot}ier  styles  if  long  bars  are  drawn 

tion  of  this  rack  w  ° 

is  similar  to  that   from  the  ends  a  very  large  amount  of 
floor  space  is  required. 

It  is  impossible  to  overload  racks  of 
this  construction.  The  hooks  and  ten- 
sion bolts  are  of  steel,  which  will  with- 
stand the  combined  bending  and  tensile  stresses. 
Cast  iron  distance  pieces  sustain  the  compression  due 
to  load.  The  hooks  are  made  with  a  roll  up  on  the 
end  to  prevent  the  load  spilling  off.  The  hooks  are 
graduated  in  length,  long  at  the  bottom  and  short  at 


FIGURE  No.  21 


for  placing  against 
a  wall,  thereby 
economizing 
space. 


LOCATION,   EQUIPMENT  OF  STOREROOM         65 


the  top;  this  effects  a  saving  in  space,  as  only  narrow 
runways  are  necessary.  There  is  the  advantage  also 
of  being  able  to  lift  the  bars  out  with  a  hoist.  The 
base  being  wider  than  the  spread  of  the  longest  hooks, 
no  condition  of  unequal  loading  can 
render  these  racks  unstable. 

This  type  of  rack  can  be  arranged 
for  erection  against  a  wall,  as  shown 
in  Figure  21.  Where  floor  space  is 
limited,  this  is  particularly  valuable. 
It  will  be  noticed  that  pans  can  be 
used  at  the  bottom  of  the  racks  for 
storing  short  pieces. 


Utilizing  all  Available  Space 

There  are  many  storerooms  where 
it  has  been  found  desirable  to  keep 
the  height  of  the  shelving  low  on 
account  of  the  nature  of  the  ma- 
terial, or  because  of  the  construc- 
tion of  the  building.  But  there  is 


FIGURE  No.  22 

New  Britain  Revolving 

Rack. 
A  revolving  type  of  rack 

no  objection  in  some  instances  to    for  storins  sma11  articles. 

^,          i     i    •        i     •  -i  i         These  can  be  made  in  a 

the  shelving  being  carried  up  to  the 


variety  of  sizes  and  with 
a  large  or  small  number 
of  compartments. 


full  height  of  the  room.  Larger 
quantities  can  be  stored  in  a  given 
area  if  this  is  done,  but  provision  must  be  made  for 
getting  at  the  upper  shelves.  Many  improvements 
have  been  made  in  ladders  for  this  purpose,  making 
it  much  easier  to  utilize  spaces  hitherto  considered 
inaccessible,  or  so  difficult  of  access  that  it  was  not 
considered  worth  while  to  attempt  to  use  them. 

Ladders  made  for  operation  through  the  center  of 
the  aisles  are  particularly  useful.     They  have  a  double 


66  STORING 

overhead  track,  which  eliminates  any  possibility  of 
the  ladder  tipping  when  heavy  loads  are  lifted  from 
the  shelves  on  either  side.  The  flexibility  of  the 
connections  and  the  self-adjusting  top  fixtures  have 
several  excellent  features.  They  permit  the  weight 
of  the  ladder  and  the  load  on  it  to  be  carried  by  the 
floor,  and  not  by  the  ladder  connections.  They  also 
prevent  the  ladder  bending  on  the  track  should  the 
floor  be  uneven.  Another  desirable  feature  is  that 
the  ladder  can  easily  be  raised  clear  of  obstructions  in 
the  alleyways  and  trucks  can  readily  be  moved  under 
them. 


CHAPTER  VI 

APPLIANCES  FOR  USE   IN  THE   STOREROOM 

Movable  Equipment 

THE  preceding  chapter  covered  a  few  of  the  prin- 
cipal needs  of  a  storeroom  in  the  way  of  fixed 
equipment.  It  is  now  proposed  to  call  attention  to 
some  appliances  which  are  essential  to  the  proper 
operation  of  every  storeroom.  It  would  be  mani- 
festly impossible  to  cover  every  appliance  on  the 
market,  but  at  the  same  time  no  discussion  of  stores 
problems  could  be  considered  complete  without  refer- 
ence being  made  to  some  of  them.  The  main  object 
in  doing  this  is  to  emphasize  the  necessity  of  modern 
equipment  for  the  storeroom. 

Accuracy  in  counting,  weighing,  and  measuring  is 
just  as  essential  in  a  storeroom  as  accurate  book- 
keeping is  in  an  office.  Goods  should  be  moved 
with  expedition  and  without  lost  motion.  To  secure 
this  one  must  have  the  right  tools  and  appliances. 
The  storeroom  requirements  in  this  respect  are  apt 
to  be  overlooked  in  many  establishments,  particularly 
in  some  manufacturing  plants. 

A  vast  amount  of  endeavor  is  devoted  to  the  re- 
duction of  costs  in  production  work.  Large  amounts 
are  expended  in  the  perfection  and  improvement  of 
tools,  and  much  has  been  done  in  the  study  of  motions 
to  achieve  this  result.  In  some  of  the  instances  where 
this  has  been  done  the  efforts  have  been  confined  ex- 


68 


STORING 


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I| 
jp 

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ii 


eo  .2 


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11 


APPLIANCES  FOR  USE  IN  STOREROOM          69 

clusively,  or  almost  so,  to  the  shop.  Now  the  cost  of 
a  manufactured  product  commences  with  the  purchase 
and  storing  of  the  raw  materials,  tools,  and  supplies 
necessary  for  such  product.  To  keep  the  cost  at  the 
lowest  point  it  is  essential  that  equal  attention  should 
be  paid  to  storeroom  appliances  to  insure  freedom 


FIGURE  No.  24 

Counting  machine  of  the  counter  type.     Will  accu- 
rately count  pieces  of  quarter  ounce  or  over. 

and  facility  in  handling  the  goods.  If  it  is  considered 
desirable  to  get  the  maximum  output  from  a  machine 
tool  in  the  minimum  time,  then  it  is  equally  desirable 
to  keep  at  the  lowest  point  the  cost  of  taking  the  raw 
material  up  to  the  machine  and  away  from  it. 

In  the  common  routine  of  every  storeroom  counting, 
weighing,   and  trucking  are  operations  which  go  on 


70 


STORING 


unceasingly,   and   some   of   the   appliances  for  doing 

this  work  are  brought  to  the  reader's  notice. 

Counting  Machines 

Counting   machines    give    an    accurate    and    quick 

count  of  any  commodity,  consisting  of  similar  parts 

or  pieces,  without 
the  use  of  tabulated 
figures  of  weights, 
mental  calculation, 
or  figuring  of  any 
kind.  The  total 
count  of  the  con- 
tents of  any  box, 
barrel,  bag,  truck, 
or  barrow  contain- 
ing an  unknown 
number  of  like  parts 
or  pieces  can  be  de- 
termined accurately 
andalmost  instantly. 
There  is  no  chance 
for  confusion  of  fig- 
ures, errors  in  esti- 

Counting  machine  of  the  portable  floor  type.  mates,  Or  defective 
Will  accurately  count  pieces  weighing  one  ounce  calculation,  as  the 
and  over.  .  , 

accuracy  oi  the  count 

is  governed  mechanically.  Mental  fallibility  is  elimi- 
nated, and  from  fifty  to  ninety  per  cent  of  time  and 
labor  is  saved  over  every  other  known  method  of 
device  employed  for  the  purpose  of  counting. 

The  method  is  one  of  ratio  weight,  scientifically 
applied  in  a  simple  machine  of  few  parts,  which  any 
ordinary  laborer  can  operate  and  understand. 


FIGURE  No.  25 


APPLIANCES  FOR  USE  IN  STOREROOM 


71 


While  knowledge  of  the  weight  of  the  material 
handled  is  at  no  time  a  feature  in  obtaining  count, 
yet,  whenever  it  is  so  desired,  weight  and  count  may 
be  secured  at  practically  one  operation. 

These  machines  are  indispensable  when  taking 
inventory,  and  a  complete  description  of  the  manner 
in  which  they  are  operated  will  be  given  in  the  chapter 
on  manual  and  clerical 
work.  The  counting 
bars  on  the  machine  can 
be  graduated  to  meet 
any  requirements.  For 
example,  the  counting 
can  be  done  by  the 
dozen,  gross  or  hundred. 

Weighing  Machines  and 
Scales 

If  it  is  considered 
necessary  to  exercise  care 
and  judgment  in  select- 
ing tools  for  the  shop, 
then  it  is  just  as  essential 
to  use  equal  discrimina- 
tion in  selecting  the  best 
apparatus  for  weighing  storeroom  material.  The  me- 
chanical construction  and  capacity  should  be  suitable 
for  the  work  they  have  to  do.  Scale  manufacturers 
have  developed  their  product  to  a  point  where  they 
can  supply  the  needs  of  any  storeroom,  no  matter  how 
exacting  its  requirements  may  be. 

When  purchasing  new  scales  and  weighing  machines 
the  storekeeper  should  carefully  investigate  the  ma- 


FIGURE  No.  26 

Counting  machine  of  the  dormant 
type.  These  can  be  made  for  almost 
any  capacity. 


72  STORING 

chines  which  appear  to  meet  his  needs.  The  me- 
chanical construction  and  reliability  under  service 
conditions  should  be  tested.  Too  little  attention 
has  been  paid  to  securing  proper  weighing  apparatus 
for  storerooms.  It  is  a  common  practice  to  make  out 
a  requisition  for  a  balance  scale,  platform  scale,  fixed 

or  portable  as  may 
be  desired,  and 
then  let  the  pur- 
chasing agent  buy 
the  cheapest  arti- 
cle which  will  meet 
this  crude  speci- 
fication. 

It  is  not  always 
the  purchasing 
agent  who  is  re- 
sponsible for  ob- 
taining suitable 
articles.  For 
storeroom  use  the 
man  who  has 
charge  of  the  ma- 
terial and  is  re- 
FIGURE  NO.  27  sponsible  for  every 

Counting  machine  of  portable  type  for  method    ounce   RoinS!  in  Or 


of  operation.     See  Chapter  VII.  i  i  • 

out  should  be  in  a 

position  to  determine  what  is  best  for  his  needs  and 
have  a  deciding  voice  in  the  selection.  The  production 
department  of  a  manufacturing  plant  is  also  interested 
in  the  question  of  accurate  weighing  and  counting. 

Any  recording  instrument  is  liable  to  get  out  of 
order;     it    is    important,    therefore,,    that    periodical 


APPLIANCES  FOR  USE  IN  STOREROOM          73 

inspection  and  testing  of  all  weighing  machines  should 
be  provided  for.  This  can  be  arranged  with  the 
manufacturers  and  will  insure  accuracy  at  all  times. 
As  an  illustration  of  this  the  author  had  reported  to 
him  three  consecutive  shipments  of  copper  from  a 
large  supply  house  all  of  which  were  short  in  weight. 
It  was  found  on  investigation  that  the  supply  house 
had  not  had  its  scales  tested  for  a  long  period.  They 


FIGURE  No.  28 
Weighing  machine  of  the  dormant  type. 

discovered,  on  examination,  that  some  registered  over- 
weight and  others  short  weight. 

It  is  equally  essential  to  have  correct  weights  in 
a  factory.  This  is  particularly  important  when  small 
parts  are  being  made.  For  example,  if  a  storekeeper 
receives  a  requisition  from  the  shop  for  200  pounds 
of  brass  tubing  and  his  scales  are  wrong  to  the  extent 
of  one  per  cent,  either  plus  or  minus,  there  will  be  a 
very  radical  discrepancy  shown  at  the  end  of  a  year 


74 


STORING 


if  similar  requisitions  come  in  frequently.  This  will 
affect  not  only  the  storeroom,  but  the  cost  department 
will  be  at  fault,  for  the  number  of  finished  pieces 


FIGURE  No.  29 

Weighing  scale  with  dial,  showing  the  tabulation  of  weights  on  an  adding 

machine. 

obtained  from  the  material  taken  from  the  stores 
would  be  greater  or  less  than  if  the  quantity  was 
exactly  200  pounds. 


APPLIANCES  FOR  USE  IN  STOREROOM 


75 


s 


76 


STORING 


Inaccurate  weighing  is  inexcusable,  because  nothing 
has  been  gained  except  perhaps  an  approximation  of 
the  weight.  But  this  cannot  be  tolerated  if  it  is 
desired  to  keep  correct  records,  and  correct  rec- 
ords are  a  fundamental  condition  in  manufac- 
turing efficiency.  A  supply  house  with  inaccurate 
weighing  apparatus  is  either  robbing  itself  or 
its  customers.  The  only  remedy  is  regular  and 
frequent  testing.  Waiting  for  some  flagrant  fault 
before  resorting  to  inspection  and  testing  is  the 
worst  kind  of  carelessness. 


This  truck  is  equipped  with  automobile  steering  gear  and  knuckles,  making 
a  right-angle  turn  possible  without  any  part  of  the  mechanism  projecting 
beyond  the  platform,  and  at  the  same  time  maintaining  a  four-point  contact 
with  the  floor,  keeping  the  load  absolutely  steady. 

Trucks 

The  problem  of  handling  material  in  a  storeroom 
should  have  just  as  much  attention  paid  to  it  as  is 
given  to  the  manipulation  of  the  same  material  in 
the  shop.  When  a  manufacturer  is  shown  a  new  tool 
by  which  he  can  turn  out  a  given  amount  of  finished 
pieces  at  a  saving  of  20  per  cent,  he  lends  a  ready  ear 
to  listen,  but  when  he  is  shown  a  storeroom  appliance 
which  will  effect  savings  and  expedite  the  movement 
of  the  goods  he  too  often  gives  it  only  casual  attention. 


APPLIANCES  FOR  USE  IN  STOREROOM          77 

There  are  many  types,  styles,  and  sizes  of  trucks 
made,  all  of  which  have  their  specific  uses,  but  the 
elevating  or  lifting  truck  could  with  profit  be  substi- 
tuted in  the  majority  of  cases  where  the  old  style  of 
fixed  platform  truck  is  still  in  use.  This  was  practi- 
cally the  only  known  means  of  transporting  certain 
materials  on  the  floor  until  the  new  type  became 
better  known.  The  separation  of  the  running  gear 
from  the  platform  has  revolutionized  transportation 
in  stores. 

An  examination  of  the  illustrations  given  in  this 
chapter  will  demonstrate  their  wide  adaptability. 
They  can  be  obtained  to  carry  any  loads  likely  to  be 
handled  in  the  average  storeroom  and  they  can  be 
arranged  so  that  the  platforms  have  sufficient  clear- 
ance for  unevenness  in  floor  conditions,  and  they  are 
good  for  any  grades  which  can  be  negotiated  with  an 
ordinary  truck. 

Some  of  the  advantages  of  the  elevating  or  lifting 
truck  will  be  enumerated.  One  running  gear  can  have 
any  number  of  flat  platforms  or  boxes  as  its  accom- 
paniment. This  means  that  while  one  load  is  being 
transported  to  its  location  in  the  storeroom  another 
load  is  being  placed  on  a  platform  at  the  receiving 
end.  The  truck  does  not  have  to  wait  at  either  end 
of  its  journey  to  be  loaded  or  unloaded.  All  that  is 
necessary  is  to  run  the  truck  under  the  platform 
and  haul  it  to  its  destination.  This  greatly  reduces 
the  amount  of  labor  required  by  the  old  trucking 
system  which  necessitated  a  wait  at  both  ends  of  the 
trip  or  dumping  the  material  on  the  floor. 

The  platforms  being  simple  and  inexpensive,  they 
can,  if  so  desired,  have  the  material  remain  on  them 


78 


STORING 


FIGURE  No.  32 
Method  of  handling  packages  and  material  with  the    old-style    truck. 


FIGURE  No.  33 

The  elevating  or  lifting  truck  will  move  the  packages  shown  here  without 
re-handling,  and  the  truck  is  not  delayed  at  the  commencement  or  end  of 
its  journey. 


APPLIANCES  FOR  USE  IN  STOREROOM 


79 


FIGURE  No.  34 


The  upper  illustration  shows  the  truck  with- 
out platform.  The  lower  one  shows  clearly 
how  the  platform  fits  over  frame.  The  main 
feature  of  this  truck  is  the  ratchet  lever  for 
raising  the  load,  therefore  requiring  a  minimum 
amount  of  operating  space.  It  is  also  furnished 
with  a  detachable  coupler  for  connecting  truck 
to  a  tractor. 


FIGURE  No.  35 
Columbus  Lift  Truck. 


80 


STORING 


APPLIANCES  FOR  USE  IN   STOREROOM 


81 


while  in  the  storeroom.  For  example,  if  forgings  are 
being  received  which  will  ultimately  go  into  the  shop 
in  lots  of  100,  they  can  be  loaded  on  the  platforms 
in  this  quantity  when  received  and  the  platforms 
stacked  in  the  store- 
room.  When  the 
shop  sends  a  requisi- 
tion to  the  storeroom 
the  forgings  can  be 
delivered  immedi- 
ately, and  without 
the  labor  of  loading, 
by  running  a  truck 
under  one  of  the 
platforms.  This  is 
much  on  the  same 
principle  as  tote 
boxes  are  used;  in 
fact,  tote  boxes  or 
stacking  barrels  can 
be  used  instead  of 
platforms. 

The  labor  item  in 
storerooms  is  further 
reduced,  because  FIGURE  NO.  37 

When  the  material  is  Anything  which  can  be  stacked  can  be  carried 
to  be  Unloaded  and  on  platforms  and  deposited  without  re- 

handling. 

placed  in  bins  or  on 

shelves,  it  can  be  done  at  any  time  to  suit  conditions. 
The  platforms  can  be  run  alongside  the  bins  when 
material  is  received  and  put  in  the  receptacles  at  any 
convenient  time. 

Another  point  worth  mentioning  is  that  when  it  is 


82 


STORING 


found  necessary  to  stack  the  loaded  platforms  in  two 
or  three  tiers,  and  it  is  desired  to  get  at  the  rear  tier, 
it  can  be  easily  done  by  running  the  lift  truck  under 
the  front  tiers,  pulling  them  out,  and  the  rearmost 
tier  is  then  accessible. 


FIGURE  No.  38 

Tote  boxes,  stacking  barrels,  and  other  forms  of  containers  can  be  moved 
easily  and  rapidly. 

A  summary  of  the  principal  advantages  over  the 
fixed  platform  type  of  trucks  would  include: 

1.  The   investment   in   trucking   equipment   would 

be  much  lower. 

2.  Much  time  is  saved  because  of  the  elimination 

of  some  loading  and  unloading. 


APPLIANCES  FOR  USE  IN  STOREROOM 


83 


84 


STORING 


mmm 


mm 


APPLIANCES  FOR  USE   IN  STOREROOM 


85 


86 


STORING 


APPLIANCES   FOR  USE  IN  STOREROOM 


87 


88 


STORING 


APPLIANCES  FOR  USE  IN  STOREROOM          89 

3.  There   would  be  a  very  appreciable   reduction 

in  the  labor  item. 

4.  A  great  saving  in  floor  space  would  be  effected, 

because  the  platforms  can  be  stacked. 

5.  The  elimination  of  some  handling  would  reduce 

the  risk  of  loss  by  damage. 

6.  The  trucking  system  would  be  more  expeditious 

and  flexible. 

When  required  for  very  heavy  duty  the  load  can 
be  lowered  gradually  and  effectively  by  a  hydraulic 
check.  Electric  drive  can  be  substituted  for  manual 
operation,  if  the  storeroom  is  a  large  one  or  consider- 
able distances  have  to  be  covered.  The  head  and 
front  wheels  make  a  complete  cycle  turn,  enabling 
the  truck  to  operate  in  its  own  length  in  narrow  aisles. 
A  further  development  in  elevating  trucks  is  in  con- 
nection with  simultaneous  weighing  and  transporting. 
The  trucks  are  equipped  with  scales  from  which 
can  be  ascertained  the  gross,  net,  and  tare  weights. 
With  these  trucks  a  special  set  of  side  bars  carry 
the  load  to  prevent  any  strain  on  the  scale  mechanism. 

Gravity  Conveyors 

It  does  not  come  within  the  scope  of  this  work  to 
discuss  all  the  various  methods  of  moving  materials. 
Elevators,  lowerators,  carrying  devices,  and  conveyors 
which  depend  on  some  form  of  power  for  their  oper- 
ation, it  is  not  proposed  to  discuss,  although  they  may 
be  necessary  in  many  storerooms.  The  gravity  con- 
veyor, however,  cannot  be  passed  over,  as  it  is  a  nec- 
essary part  of  the  equipment  of  many  storerooms, 
or  at  least  is  often  the  link  between  the  receiving  room 
and  storeroom,  or  the  storeroom  and  the  shop  when 


90 


STORING 


they  are  on  different  levels  and  the  force  of  gravity 
can  be  used.  An  investment  in  this  form  of  con- 
veyor is  very  moderate,  and  after  installation  the  cost 
of  operation  is  negligible,  for  it  is  confined  to  the 
renewal  of  a  few  parts,  as  may  be  required.  The 


FIGURE  No.  45 

This  illustration  shows  how  the  gravity  conveyor  can  be  adapted  to  curves 
and  other  unusual  conditions. 

force  of  gravity  costs  nothing,  and  it  is  ready  for  work 
every  day  for  the  full  twenty-four  hours. 

It  is  usually  advisable  to  have  the  storeroom  in 
close  proximity  to  the  point  at  which  the  goods  are 
received  into  an  establishment.  Hand-trucking  may 
not  prove  the  best  means  of  transporting  material 


APPLIANCES  FOR  USE  IN  STOREROOM          91 


92 


STORING 


APPLIANCES  FOR  USE  IN  STOREROOM 


93 


between  these  two  points,  and  it  becomes  necessary 
to  use  self-propelled  trucks  or  some  kind  of  conveyor. 


FIGURE  No.  48 

A  straight  run  to  the  storeroom.    The  capacity  is  only  limited  by  the  grade 
of  the  conveyor  and  the  loading  and  unloading  facilities. 

The  gravity  roller  conveyor  will  carry  all  kinds 
of  material  or  packages  having  one  flat  hard  surface. 
These  articles  are  conveyed  by  their  own  weight, 
provided  there  is  a  grade  of  four  per  cent.  Even  if  the 


94 


STORING 


APPLIANCES  FOR  USE  IN  STOREROOM         95 

grade  necessary  to  put  the  force  of  gravity  in  motion 
does  not  exist,  it  can  be  secured  by  elevating  the  mate- 
rial at  the  starting  point.  It  may  prove  more  economi- 
cal to  do  this  than  to  resort  to  a  power  conveyor  or 
trucking.  If  the  material  has  to  be  placed  on  trucks 
anyway  at  the  end  of  its  journey  on  the  conveyor, 
it  may  be  better  to  truck  it  the  whole  distance. 

Some  storerooms  located  in  basements  can  best 
receive  material  and  goods  via  a  gravity  chute,  while 
a  storeroom  intended  to  serve  several  departments 
of  an  establishment  could  well  be  located  at  a  suffi- 
cient height  to  feed  raw  material  to  all  of  them  by 
means  of  gravity  conveyors. 

One  of  the  greatest  advantages  of  the  gravity 
roller  conveyors  is  its  flexibility  by  means  of  curves, 
switches,  chutes,  elevators,  and  other  appliances; 
the  conveyors  can  be  run  around  corners,  through 
partitions  and  floors,  and  may  be  laid  out  practically 
where  desired.  Conveyors  depending  entirely  upon 
gravity  naturally  have  their  limitations,  but  engineers 
and  managers  of  industrial  plants  have  devoted  con- 
siderable attention  to  harnessing  the  force  of  gravity 
to  solve  their  problems,  with  very  excellent  results. 

Mechanical  Aids 

It  is  not  so  long  ago  that  physical  prowess  was 
considered  essential  for  men  engaged  in  handling  and 
storing  material,  but  physical  strength  in  the  human 
being  has  been  largely  equalized  because  of  the  many 
mechanical  appliances  and  aids  for  doing  the  work. 
These  should  be  taken  advantage  of  wherever  their 
use  will  serve  a  good  purpose.  It  is  still  possible  to 
see  three  or  four  men  struggling  with  barrels,  bags, 


96  STORING 

and  cases  filled  with  heavy  materials,  when  perhaps 
seventy  per  cent  of  the  labor  could  be  saved  by  the 
use  of  hoists,  barrel  stackers,  or  sack  stackers.  The 
utilization  of  these  contrivances  gives  employees  the 
opportunity  to  devote  their  mentality  to  still  further 
improvements.  Intensive,  strenuous,  monotonous  work 
dulls  thinking  and  hinders  advancement. 


CHAPTER  VII 
MANUAL  OPERATIONS 

Dual  Nature  of  Storeroom  Work 

IN  the  operation  of  a  storeroom  there  is  both  manual 
and  clerical  work  to  perform.  It  is  in  respect  to 
this  dual  nature  of  its  functions  that  the  storeroom 
differs  from  other  departments  of  a  business.  Both 
sections  of  the  work  must  be  on  the  same  equality 
of  accuracy  and  efficiency.  Accuracy  in  one  of  these 
and  inaccuracy  in  the  other  would  only  lead  to  con- 
fusion. A  helper  might  hand  out  50  bolts,  but  through 
inadvertance  the  number  might  get  entered  on  the 
clerical  records  as  60.  Again,  a  requisition  for  100 
pounds  of  copper  might  pass  through  the  clerical 
records  correctly,  but  through  a  mistake  in  weighing 
110  pounds  might  be  delivered.  Every  storeroom 
transaction  is  susceptible  to  these  delinquencies,  and 
it  is  only  by  accuracy  in  both  the  manual  and  clerical 
work  that  a  physical  inventory  will  tally  with  the 
written  records. 

Storeroom  clerical  records  can  be  simple  yet  com- 
plete, and  this  fact,  together  with  the  general  demand 
which  exists  for  bookkeeping  accuracy,  has  placed 
this  section  of  the  work  in  advance  of  the  manual 
work,  so  far  as  the  percentage  of  errors  is  concerned. 
But  there  is  no  good  reason  for  this,  and  the  demand 
for  better  methods  in  the  physical  handling  of  the 


98  STORING 

stores  has  developed  appliances  for  counting,  weigh- 
ing, and  measuring  which  are  having  considerable 
influence  in  the  right  direction. 

General  Considerations 

Prompt  handling  of  all  material  as  it  arrives  in  the 
storeroom  is  an  essential  feature  of  successful  stores- 
keeping.  It  is  a  phase  of  the  work  which  needs  close 
watching,  because  there  is  always  a  tendency,  particu- 
larly during  busy  hours,  to  get  the  goods  into  the  room 
and  then  allow  them  to  lie  around  on  the  floor  waiting 
for  a  more  favorable  time  to  place  them  in  the  bins 
and  receptacles.  Such  methods  as  these  involve  the 
risk  of  damage  to  the  property,  makes  the  storeroom 
untidy  in  appearance,  and  is  prolific  of  irregularities 
in  deliveries. 

When  a  requisition  is  received  it  is  a  natural  thing 
in  making  the  delivery  to  take  the  goods  from  the 
nearest  or  most  accessible  place,  which  may  be  a  pile 
which  has  been  dumped  at  some  convenient  location. 
With  some  material  this  may  not  be  important,  but 
there  are  instances  where  the  older  material  should 
be  given  out  first.  Anyway  it  is  good  practice  to  make 
it  a  rule  to  deliver  all  material  in  the  sequence  in  which 
it  was  received,  giving  priority  in  delivery  to  the  ma- 
terial which  has  been  longest  in  the  storeroom. 

Every  storeroom  probably  contains  some  articles 
which  are  seldom  called  for,  while  others  are  in  con- 
stant demand.  The  latter  should  be  placed  in  con- 
venient locations  to  facilitate  their  delivery.  Heavy 
material  should  be  stored  at  a  convenient  height  for 
loading  onto  trucks  to  prevent  any  unnecessary  labor 
in  raising  or  lowering  it. 


MANUAL  OPERATIONS  99 

Great  care  must  be  exercised  in  placing  articles 
in  their  designated  places.  It  is  just  as  bad  to  dump 
some  quarter-inch  nuts  in  a  bin  containing  five-six- 
teenths-inch nuts  as  it  is  to  make  an  entry  in  the 
sales  ledger  against  the  wrong  customer.  It  is  prob- 
ably worse,  for  it  is  likely  to  lead  to  more  confusion. 
The  mixing  of  the  wrong  sizes,  or  of  the  same  sizes 
of  different  grades,  is  perhaps  the  most  prevalent 
fault  in  storeroom  practice. 

Next  to  the  mixing  of  sizes  and  grades  the  com- 
monest fault  is  having  more  than  one  shelf  or  bin 
for  the  same  article.  If  all  storerooms  were  equipped 
with  adjustable  racks,  bins,  and  shelving,  as  described 
in  Chapter  Five,  there  would  be  no  occasion  for  this, 
because  the  receptacles  can  be  expanded  or  contracted 
at  will  to  correspond  to  the  increase  or  decrease  in 
the  quantity  of  goods  on  hand. 

With  the  old-style  wooden  bins  or  metal  bins  of 
the  inflexible  type  it  is  impossible  to  provide  for  an 
increase  in  the  quantity  of  material  being  stored, 
except  by  placing  it  in  more  than  one  receptacle,  and 
there  are  many  objections  to  such  a  course.  If  more 
than  one  bin  or  location  is  assigned  to  an  article,  the 
man  delivering  the  material  is  apt  to  overlook  the 
second  bin.  The  regular  bin  being  empty,  he  fails 
to  remember  that  there  is  more  of  the  same  article 
in  another  bin.  The  use  of  more  than  one  location 
tends  towards  the  accumulation  of  shelf-worn  or  old 
stock,  because  the  nearest  receptacle  will  invariably 
be  approached  first  and  the  more  remote  one  be 
neglected.  Duplication  of  this  character  only  leads 
to  more  errors,  because  it  gives  the  helpers  more  things 
to  remember. 


100  STORING 

Counting 

Even  when  goods  are  weighed  or  measured  they 
invariably  have  to  be  counted.  For  example,  20 
barrels  of  material  may  be  received.  The  material 


FIGURE  No.  50 

Automatic  counting  of  small  parts.  Whatever  the 
number  is  in  the  pan  on  the  platform  it  will  be  accu- 
rately recorded. 

is  checked  by  weight,  but  the  number  of  barrels  has 
to  be  counted.  This  is  an  extreme  illustration,  the 
antithesis  of  which  would  be  20  barrels  of  very  small 
articles  which  must  be  counted.  The  first  instance 


MANUAL  OPERATIONS  101 

is  a  simple  mental  count,  but  the  latter  could  not 
be  done  accurately  except  with  the  aid  of  some  me- 
chanical contrivance.  Counting  is  the  biggest  prob- 
lem in  receiving  and  delivering  articles  from  stores 
and  deserves  some  discussion. 

It  must  first  be  recognized  that  the  masses  of  things 
in  a  storeroom  come  in  like  units  or  in  units  which 
vary  so  slightly  in  weight  and  size  that  the  variations 
can  be  neutralized  on  a  bulk  machine  count.  Con- 
sequently the  great  problem  is  one  of  counting  with 
the  least  expenditure  of  time  and  labor. 

The  counting  methods  now  in  use  can  be  logically 
divided  into  five  separate  systems  as  follows: 

1.  Hand  Counting. 

2.  Weighing  and  Estimating. 

3.  Even-balance  Scale. 

4.  Proportional  Scale. 

5.  The  Automatic  Counting  Machine. 

The  importance  of  the  subject  demands  a  short 
review  of  each  of  these  methods. 

Hand  Counting 

The  usual  method  of  operation  is  to  make  a  mark 
with  a  pencil  as  the  hand-counter  finishes  a  hun- 
dred. In  hand  counting,  therefore,  there  are  three  dis- 
tinctly different  operations:  the  hand  operation,  the 
mind  operation,  and  the  pencil  operation.  To  keep 
this  up  long  enough  to  count  any  large  quantity 
creates  unusual  mind  strain,  and  errors  are  often  made. 
It  is  evident  that  if  a  person  counts  1000  small  pieces 
by  fives,  200  separate  operations  have  been  performed, 
both  mental  and  physical.  If  the  pieces  are  large, 


102  STORING 

so  that  only  two  at  a  time  can  be  counted,  then  it 
means  500  similar  mental  and  physical  operations. 

When  counting  in  this  manner  a  person  may  have 
his  attention  diverted  from  the  task  by  some  form 
of  interruption  and  is  liable  to  forget  whether  he  has 
made  the  pencil  notation,  or  may  have  to  recount. 
Modern  business  methods  do  not  tolerate  uncer- 
tainties of  this  nature.  Cost  keeping  in  a  manu- 
facturing establishment  would  be  "all  at  sea"  if 
1100  parts  were  handed  out  of  the  stores  to  the  pro- 
duction department,  instead  of  1000,  and  the  stores 
records  would  be  in  confusion. 

A  valuable  aid  to  hand  counting  is  the  mechanical 
counter.  By  using  this  the  worker  has  only  to  perform 
the  physical  operation.  These  counters  can  be  used 
to  great  advantage  when  it  is  necessary  to  handle 
each  piece  for  the  purpose  of  inspection  or  examina- 
tion. In  making  the  movement  necessary  to  examine 
the  article  the  hand  or  arm  of  the  worker  comes  in 
contact  with  a  knob  or  lever  on  the  counter  and  the 
record  is  automatically  made. 

Counting  by  Weight  and  Estimate 

In  any  modern  establishment  it  is  evident  that  hand 
counting  could  not  be  tolerated,  because  of  the  expendi- 
ture of  time  and  labor,  and  because  of  the  uncertain- 
ties of  the  final  results.  To  save  time  and  labor  the 
weighing  and  estimating  method  is  used.  This  repre- 
sents the  first  step  between  hand  counting  and  the  use 
of  a  machine  made  especially  for  the  purpose. 

Any  ordinary  weighing  scale  can  be  used  in  work- 
ing with  the  weighing  and  estimating  method.  The 
weight  is  first  obtained  of  a  given  number  of  the 


MANUAL  OPERATIONS 


103 


articles  to  be  counted,  preferably  an  even  number  for 
the  sake  of  rapid  calculation.  For  example,  if  100 
articles  weigh  six  pounds  then  sixty  pounds  of  the 
same  article  would  represent  a  total  1000  pieces. 


FIGURE  No.  51 

However  small  or  large  the  pieces  are  they  can  be  accurately  counted  in 
any  kind  of  container. 

This  method  has  the  advantage  of  greater  speed  and 
fewer  operations  over  hand  counting,  but  it  is  still 
susceptible  to  inaccuracies  from  mental  computation. 
The  ordinary  scale  is  not  always  accurate,  and  any 


104  STORING 

error  in  weighing  the  smaller  quantity  would  be  in- 
tensified in  making  the  computation  for  the  larger 
quantity.  Very  few  weighing  scales  of  any  con- 
siderable capacity  can  be  compared  with  mechanical 
counting  machines  as  to  sensitiveness.  And  the  de- 
gree of  sensitiveness  is  the  chief  factor  in  determining 
the  efficiency  of  a  machine  used  for  counting  by  bal- 
ance. The  least  hesitation  of  one  of  these  devices 
in  responding  when  the  burden  on  the  platform  is 
increased  or  decreased  is  a  flaw  on  the  accuracy  of 
the  machine.  Exceedingly  quick  response  to  what 
is  technically  termed  "  sensitive  break "  is  absolutely 
necessary  to  accuracy. 

Even-balance  Counting 

Like  the  weighing  and  estimating  method  this  is 
an  attempt  to  improve  on  hand  counting  by  some 
mechanical  device.  It  commences  by  deciding  on 
some  number  as  a  base.  For  instance,  if  50  is  the 
base  number  these  are  counted  by  hand  and  placed 
on  the  tray  on  one  side  of  the  scale.  A  quantity  is 
then  placed  on  the  opposite  tray  or  receptacle  until 
an  even  balance  is  struck.  The  two  together  should 
then  total  100  pieces  and  these  being  placed  on  one 
tray  can  be  balanced  by  a  like  quantity,  giving  a 
total  of  200  pieces. 

This  process  can  be  continued  indefinitely  until 
the  quantity  remaining  is  too  small  to  create  a  balance. 
Hand  counting  must  again  be  resorted  to  to  complete 
the  count.  This  method,  while  quicker  than  hand 
counting,  has  many  of  the  drawbacks  of  the  weighing 
and  estimating  method,  with  the  added  defect  of  a 
final  hand  count. 


MANUAL  OPERATIONS  105 

Counting  with  Proportional  Scales 

Proportional  scales  are  arranged  to  work  according 
to    certain    set,    even    ratios.     These    ratios    usually 


FIGURE  No.  52 

The  work  of  counting  can  be  done  by  boys  or  girls. 
There  are  no  mental  calculations  to  make.  Weights  can 
be  taken  on  all  machines  shown  in  Chapters  VI  and  VII. 

range  from  10  to  1  up  to  200  to  1.  A  scoop  hangs 
from  the  end  of  the  scale  beam,  serving  as  the  counter- 
poise. With  a  ratio  of  10  to  1,  one  hundred  small 
pieces  in  the  counterpoise  scoop  will  balance  1000 
similar  pieces  on  the  platform. 


106 


STORING 


si 

ii 


MANUAL  OPERATIONS 


107 


To  count  the  contents  of  unknown  bulk  lots  with 
this  scale,  the  material  to  be  counted  is  put  on  the 
platform,  while  enough  pieces  are  put  in  the  counter- 
poise scoop  to  bring  the  beam  to  a  "low  balance/7 
Then  a  single  piece  is  removed  from  the  scoop,  giving 
a  "high  balance. "  Next,  enough  pieces  are  taken 


FIGURE  No.  54 
The  Root  Counter. 

This  counter  is  arranged  so  that  the  girl's  arm  presses  the 
lever  each  time  a  sheet  is  taken  from  the  pile.  In  this  way 
counting  and  inspecting  are  done  simultaneously. 

from  the  platform  to  make  a  perfect  balance.  The 
total  of  the  pieces  removed  from  the  platform  is 
added  to  the  total  of  pieces  on  the  platform,  which 
total  has  been  determined  by  multiplying  the  ratio 
of  the  machine  by  the  number  of  pieces  in  the  counter- 
poise scoop. 


108 


STORING 


To  count  out  a  specified  number  of  pieces  with  the 
proportional  scale  a  number  of  pieces  are  placed 
in  the  counterpoise,  in  number  equal  to  1/10,  1/50, 
or  1/200  of  the  total  quantity  to  be  counted,  the 
proportion  depending,  of  course,  upon  the  set  ratio 
capacity  of  the  scale  in  use.  The  platform  is  then 
burdened  with  a  load  of  pieces  sufficient  to  bring  the 
beam  to  the  perfect  balance  point.  Without  further 
^^^  __^^  adjustment  of  beam  or 

counterpoise  scoop,  it  is 
then  possible  to  count 
out  as  many  lots  as  de- 
sired by  simply  repeating 
the  process  of  loading  the 
platform  to  the  balancing 
point.  These  scales  can 
also  be  used  for  the  pur- 
pose of  weighing  material 
as  well  as  for  counting. 

Automatic  Counting  Ma- 
chines 

The  counting  machine, 
FIGURE  NO.  55  which  retains  the  form  of 

Stacking  barrels  can  be  used  to  great  a    SCale,    has    reduced    the 

advantage  in  many  storerooms.     They  nrnr>pC5Cj    nf   rnpfhflrn'pfll 

can  be  had  in  sizes  suitable  for  storing  Pr 

the  number  of  articles  usually  called  for  counting   to    the    point 

by  the  shop'  where,  with  the  exception 

of  the  comparatively  small  hand  count  necessary  to  pro- 
vide the  ratio  number  necessary  to  operate,  all  mental 
computations  have  been  eliminated.  The  results  are 
secured  almost  automatically  and  the  total  counts 
are  indicated  in  plain  figures  on  graduated  counting 


MANUAL  OPERATIONS 


109 


bars  which  are  attached  to  the  beam.  These  machines 
have  the  usual  small  scoop  to  take  the  ratio  count  of 
pieces,  but  this  scoop  or  ratio  pan  slides  along  the 
counting  bar,  instead  of  resting  in  fixed  position  on 
the  counterpoise. 

To  obtain  the  count  of  an  unknown  quantity  of 
pieces  with  the  counting  machine,  the  tare  of  the 
package  or  contents  is  set  out  on  one  of  the  weighing 
beams,  of  which  there 
are  usually  two.  From 
the  contents  of  the 
package  the  number 
of  pieces  required  for 
the  ratio  pan  are  taken 
out;  the  number  re- 
quired for  this  purpose 
is  indicated  on  the 
counting  bar.  The 
ratio  is  then  moved 
along  the  counting 
bar  until  the  beam  is 
in  balance.  A  pointer 
indicator  immediately 

above    the    ratio     pan    Britain    Machine    Co. 

T  ,  i        referred  to  in  Chapter  VI. 

then   denotes   on  the 

counting  bar  the  exact  number  of  pieces  resting  on  the 

platform. 

Where  it  is  desired  to  count  in  certain  specified 
lots,  say  144,  the  tare  of  the  package  is  set  out  as  above 
indicated,  the  pointer  indicator  is  set  against  the  144 
mark  on  the  beam,  and  the  package  is  then  loaded 
until  the  beam  balances. 

These  counting  machines  are  made  to  cover  practi- 


FIGURE  No.  56 
Stacking  tote  boxes  made  by  The   New 
These    have    been 


110 


STORING 


MANUAL  OPERATIONS 


111 


cally  any  known  requirements  in  the  way  of  counting. 
They  range  from  delicate  machines,  which  will  record 
the  count  of  pieces  so  small  that  it  takes  25,000  to 
equal  an  ounce,  to  the  heavy  dormant  type  of  machine 
which  will  count  pieces  weighing  a  ton. 

Having  such  machines  available  it  is  conservation 
of  time  and  energy  to  employ  them.  There  is  cer- 
tainly no  room  for 
comparison  as  to 
speed,  simplicity,  or 
automatic  accuracy 
between  the  results 
obtained  with  these 
machines  and  from 
any  of  the  more  anti- 
quated  methods. 
Why  should  we  have 
adding  machines  and 
similar  devices  in  the 
office,  and  no  me- 
chanical counting  de- 
vices in  the  Store-  Tote  boxeg  J/^ene^type.  The  fea- 
room  Or  factory?  ture  of  these  which  commends  their  use  is 

FflpVi    i«s    «n     fltfprrmt    that  when  emPiy  hundreds  of  them  can  be 

;    nested  and  stacked  in  a  very  small  space. 

at  the  solution  of  the 

problem  of  obtaining  a  maximum  saving  of  time  and 
of  mental  and  physical  energy  by  some  automatic 
mechanical  means. 

Summary 

Complete  accuracy  in  the  manual  operations  of  a 
storeroom  would  be  exceedingly  difficult  to  maintain 
without  cleanliness,  orderly  arrangement  of  the  stock, 


112  STORING 

and  general  tidiness.  These  must  be  enforced.  With 
these  conditions,  coupled  with  efficient  mechanical 
devices,  well-arranged  bins,  shelves,  and  other  re- 
ceptacles, and  finally  with  alert,  capable,  and  willing 
helpers  there  will  not  be  much  go  wrong  with  store- 
room operations. 


CHAPTER  VIII 
CLERICAL  WORK.  —  INVENTORIES 

The  Stores  Records 

THERE  is  nothing  complicated  or  intricate  in 
connection  with  stores  bookkeeping  and  clerical 
work,  but  it  must  be  accurate.  This  last  statement 
is,  perhaps,  true  of  all  bookkeeping,  but  it  applies 
with  unusual  force  in  connection  with  stores  records, 
because  an  error  in  them  can  sometimes  only  be 
brought  to  light  and  rectified  by  a  physical  count  of 
articles  in  the  stores,  which  might  involve  consider- 
able delay  and  expense.  With  other  forms  of  book- 
keeping errors  can  be  discovered  and  rectified  by 
reference  to  some  allied  clerical  work. 

Probably  the  simplicity  of  the  work  has  some  bear- 
ing on  the  inaccuracies  which  appear,  but  this  is  no 
good  reason  for  their  appearance.  The  more  prob- 
able reason  is  that  too  many  accountants  look  upon 
the  work  as  unimportant,  at  least  that  part  of  the 
clerical  work  which  has  to  do  simply  with  recording 
the  quantity  of  material  in  stock,  while  at  the  same 
time  they  will  lay  greater  stress  on  keeping  a  stores 
account  which  reflects  the  value  of  the  goods  in  the 
storeroom.  To  the  custodian  of  the  property,  and  in 
control  of  its  movements  in  and  out  of  the  stores, 
quantities,  sizes,  and  weights  are  of  greater  moment. 

The  purpose  of  this  work  being  to  limit  the  dis- 
cussion to  storekeeping  problems,  it  is  not  intended  to 


114  STORING 

dip  deeply  into  financial  problems  and  cash  values. 
Such  problems  come  more  properly  under  accounting 
work,  and  any  digression  into  these  problems  would 
involve  cost  keeping,  which  in  itself  is  a  subject  on 
which  volumes  have  been  and  could  be  written. 

To  compile  and  maintain  the  stores  records,  certain 
forms  and  documents  are  necessary.  These  will  be 
taken  up  in  detail  in  a  later  chapter  dealing  with  the 
routine  work.  All  stores  clerical  work  is  based  upon, 
and  revolves  around,  the  perpetual  inventory,  or  stores 
ledger.  This  instrument,  therefore,  will  be  discussed 
in  detail  from  different  angles. 

The  Stores  Ledger 

The  ledger  accounts  with  customers  should  not  be 
more  accurate  than  the  ledger  or  perpetual  inventory, 
which  records  quantities  received  into  stores,  deliv- 
ered out  of  stores,  and  balances  on  hand.  This  should 
be  kept  posted  so  closely  that  complete  detailed  in- 
formation can  be  obtained  from  it  monthly,  weekly, 
daily,  and  hourly.  The  information  required  from 
a  perpetual  inventory  is  not  just  what  quantities  of 
each  article  are  in  the  storeroom,  but  it  should  tell 
what  quantities  are  on  order,  what  have  been  received 
in  any  given  period,  what  has  been  delivered  or  the 
rate  of  consumption,  and  whether  that  consumption 
is  uniform  all  the  year  around  or  subject  to  variations. 

The  record  can  be  extended  so  that  a  balance  of 
credits  against  the  stock  can  be  proven  with  the  daily 
sales,  also  a  balance  of  the  debits  against  the  pur- 
chases daily,  thereby  proving  the  work  as  well  as 
indicating  the  exact  amount  of  stock  on  hand  each 
day,  and  at  the  end  of  a  month  the  actual  value  of 


CLERICAL  WORK  —  INVENTORIES 


115 


each  commodity;  even  in  case  of  fluctuations  in  prices. 
These  features,  however,  go  beyond  strictly  storeroom 
work,  and  it  is  not  proposed  to  discuss  them. 

Machine  Bookkeeping 

As  the  use  of  the  bookkeeping  machine  is  being 
applied  to  stock  records,  its  possibilities  should  not  be 
overlooked.  Owing  to  the 
absolute  control  of  the 
work  done  it  eliminates 
the  necessity  of  some  of 
the  higher  priced  labor 
which  hand  methods 
make  indispensable.  The 
work  is  turned  out  at  far 
greater  speed  than  can  be 
attained  by  hand,  it  is 
more  legible,  and  part  of 
the  higher  grade  labor  can 

be  allocated  to  Other  WOrk. 

By    Way    Of    illustration 

,  .         .  - 

in    its   application   to   per-     a  bookkeeping  machine.     The  forms 

petual  inventories  a  ma- 

•V  .  . 

chine  to  handle  this  class 
of  work  in  such  a  way  as  to  show  the  necessary  results 
must  be  extremely  flexible  and  simple  of  operation  and 
it  must  furnish  the  required  results  without  attention 
on  the  part  of  the  operator  beyond  printing  the  proper 
items  in  their  proper  columns.  Two  cross  computa- 
tions must  be  made  simultaneously,  one  of  quantities 
and  one  of  values.  To  the  quantity  in  stock,  with  its 
value,  must  be  added  the  quantity  and  value  of  mer- 
chandise placed  in  stock,  the  new  total  of  quantity 


FIGURE  NO.  59 

Elliott-Fisher  Bookkeeping  Machine. 
Perpetual  inventories  of  the  card  or 
loose-leaf  type  can  be  written  up  with 


,  Placed  °\the  flat  surface  shown 

under  the  machine. 


116  STORING 

and  value  shown  in  the  register  being  then  printed  in 
the  balance  columns.  Likewise,  withdrawals  of  quan- 
tity and  value  from  stock  must  be  deducted  and  the 
balances  shown.  Simultaneously  with  these  opera- 
tions a  control  total  of  the  value  of  the  merchandise 
put  into  stock  or  taken  out  must  be  furnished  daily, 
and  where  required  the  machine  should  also  furnish 
totals  of  quantity  placed  in  or  withdrawn  from  stock. 
This  method  of  handling  the  stock  ledger  gives  a  per- 
petual inventory  of  all  classes  of  goods,  as  well  as  an 
immediately  available  total  of  their  value,  both  as 
units  and  as  a  whole. 

The  Physical  Inventory 

Before  discussing  the  clerical  inventory  from  other 
viewpoints,  it  is  necessary  to  make  some  observations 
regarding  physical  inventories.  It  would,  perhaps, 
seem  that  these  could  be  dispensed  with  if  the  clerical 
inventory  were  kept  perfectly  accurate.  Many  argu- 
ments have  been  advanced  advocating  the  abolition 
of  physical  inventories,  and  the  matter  has  been  given 
some  publicity  in  technical  publications.  It  is  pro- 
posed to  recapitulate  some  of  these  for  the  better 
elucidation  of  the  problem. 

It  is  claimed  that  although  the  clerical  records  may 
show  the  true  state  of  the  stock  as  far  as  the  docu- 
ments go  from  which  the  record  is  compiled,  still  it 
might  not  represent  the  true  condition  of  the  stock. 
For  instance,  suppose  a  requisition  was  received  for 
200  washers,  and  through  a  mistake  on  the  part  of 
the  helper  300  were  delivered,  how  would  such  a 
mistake  be  discovered  except  by  a  physical  count? 
Another  instance  would  be  in  the  event  of  pilfering 


CLERICAL  WORK  —  INVENTORIES  117 

or  theft;  this  could  never  be  discovered  except  by 
making  a  physical  count  or  examination  of  the  mate- 
rial and  comparing  it  with  the  clerical  record. 

In  a  manufacturing  plant  it  is  claimed  that  for  a 
certain  period  every  year  the  plant  must  be  closed 
down  for  repairs,  renewals,  and  replacements,  during 
which  period  a  physical  inventory  can  be  taken  and 
a  stores  "house  cleaning"  indulged  in,  because  at 
such  a  time  most  of  the  help  in  the  stores  has  to 
be  paid  anyway  and  it  costs  nothing  to  make  the 
inventory. 

It  is  contended  also  that  the  fact  being  known 
that  a  physical  inventory  will  be  taken  prevents  pil- 
fering, and  at  the  same  time  is  an  incentive  to  ac- 
curacy on  the  part  of  the  clerks  keeping  the  clerical 
records,  because  they  know  a  check  will  be  made 
against  their  work  and  this  prevents  carelessness. 

The  stock  of  some  materials,  such  as  coal  and  sand 
and  anything  which  is  not  counted  or  weighed  out  in 
accurate  quantities,  can  only  be  approximated  from 
the  clerical  records.  To  get  a  correct  inventory  of 
these  it  is  imperative  that  physical  particulars  be 
taken. 

There  are,  of  course,  some  concerns  who  keep  no 
perpetual  inventory.  This  omission  is,  perhaps,  more 
prevalent  among  small  manufacturers  than  any  other 
class  of  business  men.  They  probably  keep  a  record 
of  the  quantity  of  material  used  in  production  work 
and  duly  charge  it  to  the  respective  shop  orders. 
They  take  an  annual  physical  inventory  to  enable 
them  to  prepare  a  balance  sheet  and  ascertain  what 
profit  or  loss  they  have  made  during  the  year.  This 
is,  of  course,  not  in  any  sense  a  check  on  the  incom- 


118 


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120  STORING 

ings  and  outgoings  of  the  storeroom  and  is  only  given 
as  an  illustration  of  outworn  methods  which,  however, 
are  still  permitted  to  exist. 

The  Perpetual  Inventory 

It  is  universally  conceded  that  a  perpetual  inventory 
is  essential;  and  it  is  asserted  that  if  properly  kept 
no  other  form  of  inventory  is  necessary;  that  it  can 
be  brought  to  a  state  of  perfection  and  accuracy, 
and  that  periodic  physical  inventories  can  be  dispensed 
with.  Statements  have  been  made  that  this  course 
has  been  adopted  in  some  establishments,  resulting 
in  large  savings. 

It  is  claimed  that  in  a  manufacturing  plant  it  is 
a  very  serious  loss  to  close  down  for  a  week  to  take 
inventory.  This  loss  falls  heavily  on  the  workmen, 
because  it  takes  from  them  about  one  fiftieth  or  two 
per  cent  of  their  annual  income.  The  overhead  ex- 
pense of  the  establishment  goes  on  during  this  period 
without  any  production  work  being  done.  The  sal- 
aries also  of  all  those  engaged  in  the  work  of  taking 
the  inventory  while  production  is  at  a  standstill  are 
a  dead  loss,  for  while  nothing  is  being  produced  they 
cannot  be  distributed  as  a  burden  on  the  factory. 

Another  point  made  is  that  perpetual  inventory 
figures  are  more  reliable  than  those  of  a  physical 
inventory  unless  the  latter  results  are  checked  by 
recounting  and  reweighing.  If  this  has  to  be  done 
to  insure  accuracy  it  is  equivalent  to  taking  two 
inventories.  If  the  periodical  physical  inventory  is 
dependent  for  its  accuracy  solely  on  counting  and 
weighing  which  may  have  been  done  hurriedly  or 
under  stress,  then  it  is  not  likely  to  be  as  reliable  as 


CLERICAL  WORK  —  INVENTORIES  121 

the  clerical  records.  This  work  is  frequently  done 
under  pressure,  largely  in  overtime.  The  persons 
engaged  often  labor  long  hours  to  complete  the  work 
within  a  specified  time,  and  sometimes  amid  the  con- 
fusion of  changing  and  rearranging  the  stores,  which 
is  a  fruitful  source  of  errors. 

Summary 

The  whole  discussion  can  be  condensed  into  a  few 
sentences.  Both  inventories  are  necessary.  If  a 
banker  kept  absolutely  correct  books,  would  that 
prove  that  no  cash  was  missing?  Would  he  go  on 
indefinitely  without  checking  one  against  the  other? 
It  is  a  fallacy  to  think  that  either  can  be  dispensed 
with.  The  dual  nature  of  the  storeroom  work  has 
been  mentioned  before.  In  the  matter  of  inventories 
its  duality  is  still  more  in  evidence. 

There  are,  however,  conditions  and  exceptions  which 
need  elucidating  and  in  doing  this  the  ideal  method 
of  inventorying  will  be  explained. 

Correct  Inventorying 

It  must  be  obvious  to  the  student  and  close  ob- 
server of  storage  problems  that  both  the  clerical  and 
physical  inventory  are  necessary,  or  rather  that  the 
clerical  records  are  absolutely  imperative,  while  the 
physical  feature  is  more  in  the  nature  of  a  check  on 
the  former.  To  say  that  it  is  positively  essential 
at  periodic  intervals  to  count,  weigh,  measure,  and 
tabulate  every  item  in  the  stores  is  not  literally  true, 
because  such  a  comprehensive  tabulation  is  not  really 
necessary.  There  is  an  alternative  course  which  can 
be  adopted  and  which  will  cover  all  requirements 
deemed  essential  for  checking  the  bookkeeping  records. 


122  STORING 

The  ideal  inventory  is  the  perpetual  record  com- 
piled accurately  with  the  entries  made  immediately 
after  any  material  is  put  into  or  taken  out  of  the 
bins.  The  records  should  be  so  accurate  that  at  any 
moment  one  could  count  the  pieces  in  any  bin  and 
find  the  contents  tally  with  the  balance  shown  on  the 
records.  This  state  of  perfection  may  be  approached 
very  closely,  but  the  complete  elimination  of  all  errors 
cannot  always  be  attained  while  the  human  factor 
has  to  be  considered.  The  problem,  then,  is  to  get 
this  work  executed  to  conform  as  nearly  as  possible 
to  the  ideal  outlined. 

The  perpetual  inventory  is  compiled  from  the  doc- 
uments or  vouchers  which  show  the  entries  into  and 
out  of  the  stores.  These  documents  are  not  as  a  rule 
as  legible  or  clearly  defined  as  the  documents  from 
which  debits  and  credits  are  entered  in  the  ledger  with 
customers,  yet  no  accountant  would  take  these  entries 
as  correct  without  some  verification  or  check.  It  is 
equally  essential  to  verify  the  entries  in  the  stores 
ledger. 

It  is  an  excellent  plan  for  a  storekeeper  to  con- 
sider himself  in  the  position  of  a  banker.  The  re- 
cipient of  cash  at  a  bank  must  give  a  check  or  receipt 
and  when  cash  is  deposited  a  deposit  slip  must  be 
made  out.  These  papers  form  definite  evidences  of 
the  transfer  of  cash,  and  when  collected,  tabulated,  and 
totaled  show  unmistakably  exactly  what  has  passed 
in  and  out.  Now  a  storekeeper  should  have  cor- 
responding papers  and  should  jealously  guard  them, 
for  these  form  the  basis  of  his  clerical  work. 

The  physical  check,  for  it  can  scarcely  be  called 
an  inventory,  should  be  carried  out  at  convenient 


CLERICAL  WORK  —  INVENTORIES 


123 


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124  STORING 

times.  In  large  storerooms  the  dislocation  and  inter- 
ruption of  regular  routine  caused  by  the  stupendous 
task  of  counting  or  weighing  or  measuring  and  then 
tabulating  everything  in  the  storeroom  should  not  be 
tolerated.  The  alternative  to  this  is  to  do  the  work 
at  any  time  an  opportunity  offers,  but  the  whole 
storeroom  should  be  covered  in  this  way  within  cer- 
tain time  limits.  Possibly  some  active  items  should 
be  checked  at  more  frequent  intervals  than  others. 

By  following  this  practice  closely  and  covering 
all  of  the  stores  within  a  prescribed  period  there  will 
not  be  much  go  wrong,  and  if  there  are  errors  and 
discrepancies  they  will  be  quickly  discovered  and 
rectified.  They  can  be  rectified  by  recourse  to  the 
documents  from  which  the  records  were  written  up. 
In  a  manufacturing  establishment  these  usually  pass  into 
the  cost  department,  and  in  a  supply  house  they  would 
finally  go  to  the  accountant.  In  either  case  they  should 
be  preserved  long  enough  to  enable  the  storekeeper  to 
have  access  to  them  to  clear  up  discrepancies. 

There  are  usually  lulls  in  storeroom  routine  oper- 
ations when  this  work  of  checking  can  be  done,  but  if 
it  cannot  be  carried  out  by  the  regular  help,  or  if  it  is 
desired  to  have  some  independent  help  perform  the 
task  to  prevent  collusion,  there  are  several  persons 
who  could  be  called  upon  from  the  receiving  depart- 
ment, shipping  room,  or  office.  In  large  factories, 
where  inspectors  are  employed  in  the  production  de- 
partment, these  men  might  take  some  part  in  it. 

Other  Considerations 

It  is  possible  that  there  are  storerooms  which  con- 
tain comparatively  few  items,  and  these  may  be  of  a 


CLERICAL  WORK  —  INVENTORIES 


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bulky  nature,  where  the  physical  check  may  be  a 
matter  of  no  great  consequence.  It  can  never  be 
said  to  be  entirely  negligible.  It  is  probably  in  con- 
nection with  such  storerooms  that  the  contention  has 
been  made  that  physical  checking  is  unnecessary. 
Still,  it  is  not  good  practice  to  dispense  with  it  entirely. 
There  is  no  insuperable  objection  to  a  periodical 
inventory  being  taken  if  the  activities  of  the  establish- 
ment have  to  be  suspended  anyhow  for  some  other 
reason.  But  to  suspend  business  just  to  take  an  in- 
ventory is  seldom  necessary  and  cannot  be  commended. 
As  these  pages  are  being  written  the  author  had  an 
experience  of  this  character  with  a  very  large  steel 
concern,  which  for  one  week  made  no  deliveries  and 
put  many  of  their  customers  to  great  inconvenience. 
With  many  manufacturers  custom  has  decreed  the  an- 
nual closing  down  for  inventory  purposes  and  they  do 
not  seem  to  be  able  to  break  away  from  it.  To  pro- 
duce at  a  profit  is  what  a  manufacturing  establish- 
ment exists  for.  To  suspend  this  function  cannot  be 
considered  good  policy.  Inventory  taking  can  be 
done  when  it  does  not  entail  a  loss  of  profitable  pro- 
ductivity. 

Values  and  Stores  Inventories 

Generally  speaking  a  storekeeper  thinks  and  cal- 
culates in  quantities,  not  in  values.  In  their  larger 
aspects,  and  outside  of  the  storeroom  physical  con- 
ditions which  surround  a  storekeeper's  work,  values 
must  be  considered.  If  a  storekeeper  ponders  these 
his  vision  projects  itself  into  the  purchasing  agent's 
sphere  in  one  direction  and  into  the  cost  accountant's 
work  in  the  other  direction.  There  is  no  objection 


CLERICAL  WORK  -  INVENTORIES 


127 


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128  STORING 

to  a  storekeeper  having  vision  beyond  his  job,  but  it 
is  from  a  desire  to  confine  this  discussion  strictly 
to  stores  problems  that  so  little  has  been  said  of  values. 

Some  concerns  insist  on  the  records  of  values  kept 
on  the  same  form  as  the  records  of  quantities,  and  an 
illustration  is  given  of  such  a  form  in  Figure  64. 
This  scheme  may  be  found  advisable  with  some  smaller 
concerns,  and  is  certainly  desirable  when  the  account- 
ing or  cost  departments  do  not  keep  such  records. 

In  manufacturing  establishments  there  are  two 
methods  of  pricing  the  material  delivered  from  the 
stores  to  the  shop.  The  cause  for  there  being  more 
than  one  method  is  the  fact  that  there  is  so  often  a 
variation  in  the  price  of  articles  received  into  the 
stores.  For  example,  1000  pounds  of  copper  is  re- 
ceived costing  40  cents  per  pound;  400  pounds  of  this 
is  delivered  to  the  shop,  leaving  a  balance  in  the 
stores  of  600  pounds.  At  this  point  500  pounds  more 
are  received  at  43  cents  per  pound.  The  total  quantity 
in  the  stores  would  then  be  1100  pounds  and  the 
average  price  would  be  41.36  cents  per  pound. 

It  is  a  practice  with  some  establishments  to  average 
the  price  immediately  there  is  a  change,  because  it  is 
claimed  that  it  is  better  to  have  one  price  apply  on 
all  material  of  the  same  kind.  This  is  really  making 
the  stock  of  material  in  the  stores  subject  to  all  mar- 
ket fluctuations.  It  is,  of  course,  subject  to  these 
fluctuations,  but  for  cost-keeping  purposes  in  the 
factory,  fluctuations  of  this  character  cannot  be  con- 
sidered. This  point  has  been  discussed  in  Chapters 
Two  and  Three.  Those  who  adopt  this  method 
argue  that  it  is  less  liable  to  lead  to  mistakes,  simpli- 
fies pricing  of  material,  and  renders  the  calculations  % 


CLERICAL  WORK  -  INVENTORIES  129 

connected  with  arriving  at  the  value  of  an  inventory 
much  easier. 

On  the  other  hand,  there  is  much  to  be  said  against 
it.  For  instance,  suppose  the  sales  department  made 
a  contract  to  sell  certain  articles,  the  product  of  the 
factory,  and  among  other  materials  in  making  these 
articles  1000  pounds  of  copper  was  needed.  The  shop 
might  withdraw  600  pounds  to  commence  the  work, 
but  on  subsequent  withdrawals  the  price  would  be 
raised.  This  is  not  fair  or  reasonable,  because  the 
original  contract  for  the  sale  of  the  articles  was  made 
on  the  basis  of  40  cents  per  pound  for  copper  and  it 
was  procured  and  delivered  into  the  stores  at  that 
price. 

While  it  entails  a  little  more  clerical  work  it  is 
good  practice  to  charge  out  the  1000  pounds  at  the 
price  paid,  even  if  it  was  delivered  in  quantities  of 
10  or  20  pounds  at  a  time.  The  theory  in  all  stores- 
keeping  is  that  the  material  which  has  been  in  the 
stores  the  greatest  length  of  time  should  be  delivered 
first;  and  this  being  the  case,  then  it  should  be  charged 
out  at  its  own  price,  and  not  at  the  price  of  some  later 
delivery. 

In  many  manufacturing  operations  it  is  not  de- 
sirable to  have  the  stores  show  a  profit  or  a  loss,  which 
it  would  do  if  the  average  pricing  feature  was  in  vogue. 
The  only  way  to  obviate  this  is  to  adopt  the  plan  of 
charging  the  outgoing  material  at  its  incoming  price. 
Of  course,  the  regular  percentage  must  be  added  to 
cover  stores  costs,  and  this  percentage  can  be  figured 
so  closely  that  over  a  period  of  one  year  the  balance 
one  way  or  other  is  negligible. 


CHAPTER  IX 

THE  STORES  DEPARTMENT 

The  Storekeeper 

THE  man  in  charge  of  the  stores  of  any  establish- 
ment holds  a  responsible  position.  If  it  is  a 
concern  with  many  branches  or  factories  he  usually 
carries  the  title  of  General  Storekeeper  and  would 
have  assistants  at  each  factory  or  branch.  In  such 
cases  he  may  have  under  his  control  property  worth 
millions  of  dollars,  and  his  responsibility  is  a  heavy 
one.  Many  concerns  do  not  take  this  view  of  a  store- 
keeper's duties,  but  look  upon  him  as  a  man  who 
simply  has  charge  of  receiving  into  and  delivering 
out  of  the  stores  the  material  and  articles  used  or 
needed  in  the  establishment.  He  is  not  supposed  to 
have  a  thinking  job,  but  to  have  only  physical  duties. 
In  many  cases,  even,  the  clerical  work  is  taken  from 
him  and  handled  in  the  accounting  office. 

The  position  of  a  storekeeper  needs  better  recogni- 
tion; it  needs  recognition  on  a  basis  somewhat  differ- 
ent from  that  which  is  usually  accorded  it.  Sufficient 
consideration  has  not  been  given  to  the  potentialities 
of  the  keeper  of  the  stores.  He  is  in  complete  control 
of  a  very  large  proportion  of  the  wealth  of  many 
concerns.  If  he  is  not  in  complete  control,  it  is  be- 
cause of  lack  of  ability  and  vision  on  his  part,  or 
because  he  is  not  appreciated  at  his  full  worth,  or 
because  he  is  not  given  a  standing  commensurate  with 
that  to  which  he  is  entitled.  From  a  wide  experience 


THE  STORES  DEPARTMENT  131 

the  author's  opinion  is  that  a  sufficiently  high  stand- 
ard is  not  placed  on  the  position  of  the  storekeeper. 
Observation  will  disclose  plenty  of  instances  where  he 
is  considered  as  a  useful  man  to  place  articles  in  bins 
and  on  shelves  provided  for  him,  and  to  hand  them 
out  as  needed.  He  is  too  often  regarded  as  an  ampli- 
fied laborer,  rather  than  as  a  man  big  enough  to  have 
a  keen  insight  into  the  affairs  of  a  concern. 

This  fact  must  be  recognized  —  and  there  is  ample 
evidence  that  many  executives  are  beginning  to  recog- 
nize it  —  that  storekeeping  problems  are  problems 
of  vital  importance  in  the  economics  of  business; 
they  are  of  vital  and  individual  importance  in  every 
establishment.  This  being  so,  then  let  us  put  in  con- 
trol of  the  vast  amount  of  wealth  in  storage  men  who 
have  the  ability,  capacity,  keenness,  and  foresight  to 
solve  these  problems. 

Sphere  of  Usefulness 

In  Chapters  Two  and  Three  some  points  were  dis- 
cussed on  storage  economics.  No  concern  which  car- 
ries any  material  in  storage  for  long  or  short  periods 
can  afford  to  ignore  or  refuse  consideration  to  storage 
problems.  The  man  who  knows  most  about  his 
business  seldom  fails,  and  the  one  who  knows  least 
is  usually  the  one  who  does  fail.  A  very  large  per- 
centage of  business  failures  are  caused  by  buying  too 
much  or  too  little.  The  act  of  buying,  however,  is 
often  only  incidental;  the  real  cause  of  the  failure  is 
frequently  through  lack  of  consideration  to  the  after 
results,  —  the  consequences  which  follow  buying,  — 
and  this  includes  the  care  of  the  material  while  it  is 
in  the  possession  of  the  buyer,  that  is,  while  in  storage. 


132  STORING 

An  establishment  composing  many  departments  may 
use  many  varieties  of  material,  and  some  of  the  de- 
partments may  not  come  in  contact  with  material 
used  in  other  departments,  but  the  storekeeper  comes 
in  contact  with  them  all  and  long  practice  will  give 
him  a  broader  acquaintance  and  knowledge  of  the  re- 
quirements of  a  concern  than  any  other  man.  While 
he  may  not  have  such  an  intimate  technical  knowl- 
edge of  the  material  as  the  man  who  is  actually  work- 
ing it,  still  he  should  have  some  very  good  information 
of  its  general  characteristics. 

In  the  matter  of  the  supplies  used  in  and  around 
an  establishment  the  storekeeper  should  have  a  de- 
ciding voice.  He  should  be  a  man  who  can  determine 
the  utility  of  an  article.  In  some  manufacturing 
plants  very  large  sums  are  expended  annually  for  such 
things  as  soap,  cleaning  compounds,  disinfectants, 
oils,  brooms,  etc.,  and  considerable  duplication  exists 
which  could  be  avoided  by  placing  the  control  of  them 
entirely  in  the  hands  of  one  man,  instead  of  permitting 
the  supply  of  them  to  be  influenced  by  the  likes,  dis- 
likes, and  prejudices  of  each  department.  Being  in  an 
independent  position,  serving  all  departments  with 
equal  fairness,  he  is  in  a  position  to  weigh  all  the  points 
connected  with  furnishing  supplies  with  good  judgment, 
and  to  give  a  decision  fairly  and  judicially. 

Relations  with  other  Departments 

The  storeroom  exists  as  a  place  of  safe  keeping  for 
the  materials  needed  throughout  the  establishment. 
Its  resemblance  to  a  bank  can  be  again  demonstrated, 
for  it  is  the  place  of  deposit  of  the  wealth  of  a  con- 
cern as  represented  in  materials  and  supplies.  It 


THE  STORES  DEPARTMENT 


133 


0    O                O    O 

MANILA  TRANSMISSION  ROPE 

Circum-                                       Weight 
ference          Diameter         per  Foot 
of  Rope            Inches            4-Strand 
Inches                                     Founds 

Approximate 
Breaking 
Strength 
Founds 

Largest            Length          Diameter        Maximum 
Working                of              of  Smallest       R.  P.  M. 
Tension             Spike              Sheave           for  6000 
Founds              Feet                Inches          f  L  per  mia. 

fen 
Weight 
Pounds 

1       2#                X              0.20 
i       2>i                 ft              0.26 
3                 1                  0.34 
3#              1#              0.42 
3V              1%              0.52 
4#              1#             0.65 
k      4#              1%              0.76 
5                  1#              0.87 

5tf              IK              L04 
6                 2                 1.34 

4,200 
5,700 
7,500 
8,900 
11,700 
13,200 
16,700 
18,500 
23,000 
30,000 

112                7                30             650 
153                8                35             550 
200               10                40             475 
250              10                45             425 
310              10                50             400 
380              12                55        .     350 
450              12                60             320 
530              12                65             290 
610              12                70             270 
800              14                80             240 

95 

125 
175 
225 
275 
325 
375 
425 
550 
650 

Weight  per  foot  =  0.34  X  DL 
taken  at  200  X  Diamete 

CONTRACT  WITH 
DATP 

iineter2.      Breaking  Strength  =  7500  X  Diameter2.      Maximum  Tension 
r3.    Diameter  smallest  Sheave  advised  =  40  X  Diameter. 

f 

EXPIRES  ... 

AVERAGE   MONTHLY 

CONSUMFTK 

1M 

ORDERS    PLACED 

FIGURE  No.  65 

The  data  on  rope  can  be  obtained  from  catalogues  and  on  the  same  sheet 
a  record  can  be  kept  of  orders  placed. 


134  STORING 

exists  as  a  unit  in  an  organization  to  supply  from  its  de- 
posits the  needs  of  the  other  units.  The  attitude  of  the 
other  departments  will,  therefore,  be  a  reflection  of  the 
stores  department's  service  to  them  and  to  some  extent 
the  gauge  by  which  its  efficiency  will  be  measured. 

The  storekeeper  should  be  in  sympathy  with  the 
requirements  of  other  departments,  particularly  in 
the  matter  of  supplies,  if  these  are  under  his  control. 
Having  control  of  these  places  him  in  a  position  where, 
should  his  decisions  run  counter  to  the  desires  of  other 
departments,  he  may  be  accused  of  being  out  of  sym- 
pathy with  the  legitimate  aims  and  purposes  of  those 
departments.  For  this  reason  a  certain  amount  of 
tact  and  diplomacy  must  be  exercised. 

Catalogues  and  Information 

Every  storekeeper  should  have  information  about 
the  material  and  articles  under  his  charge.  He  should 
know  something  about  specifications  and  should  be 
able  to  define  correctly  all  goods  by  their  recognized 
commercial  definition.  Specifications  and  definitions 
have  already  been  discussed  in  Chapter  Four.  In 
compiling  these  definitions  the  storekeeper  will  have 
need  of  a  good  line  of  catalogues. 

It  is  not  just  the  fact  that  catalogues  give  the  trade 
names  of  articles,  the  different  sizes  in  which  they  are 
made,  and  the  different  grades,  but  they  contain  valu- 
able technical  information  which  forms  a  liberal 
education  for  the  men  in  the  storeroom.  It  must  be 
remembered  that  technical  information  in  catalogues 
is  frequently  written  by  experts  in  their  particular 
line,  by  men  whose  ideals  are  the  perfection  of  their 
product.  Such  information  in  catalogues  can  gener- 


THE  STOKES  DEPARTMENT 


135 


0    O                O     O 

TABLE  OF  WEIGHTS  OF 

SHEET  COPPER 

•  Per  Square  Foot,  and  Thickness  Per  Stub*  Gmttre 

Rolled  Copper  has  specific  gravity  of  8.90.    One  cubic  foot  weighs  568.125  Ibs. 
Special  sizes  made  to  order. 

Stubs 
wire 
gauge 

Thickness  in 
decimal  parts 
of  1  inch 

Weight 
per  square 
foot  . 
in  ounces 

Weight  of 
sheet 
14x48  in. 
in  pounds 

Weight  of 
sheet 
24x48  in. 
in  pounds 

Weight  of 
sheet 
80x60  in. 
in  pounds 

Weight  at 
sheet 
86x72  in. 
in  pounds 

Weight  of 
sheet 
48x72  in. 
in  pounds 

35 
33 
31 

28 
27 

.00537 
.00806 
.0107 
.0134 
.0161 

4 

6 
8 
10 

12 

1.16 
1.75 
2.33 
2.91 
3.50 

2 
3 
4 
5 
6 

3.12 

4.68 
6.26 
7.81 
9.37 

4.60. 
6.75 
9. 
11.25 
13.50 

6 
9 
12 
15 
18 

26 
25 
24 
22 
21 

.0188 
.0215 
.0242 
.0269 
.0322 

14 
16 
18 
20 
24 

4.08 
4.66 
6.25 
5.83 

7. 

7 
8 
9 
10 
12 

10.93 
12.50 
14.06 
15.62 
18.75 

15.75 
18 
20.25 
22.60 
27 

21 
24 
27 
80*. 
36- 

19 
18 
16 
15 
14 

.0430 
.0538 
.0645 
•    .0754 
.0860 

32 
40 
48 
•     56 
64 

9.33 
11.66 
14. 
16.33 
18.66 

16 
20 
24 
28 
32 

25 
31.25 
37.50 
43.75 
60 

36 
45 
64 
63 

72 

48 
60 
72 
84 
96 

13 
12 
11 
10 
9 

,095 
.109 
.120 
.134 
.148 

70 
81 
89 
100 
110 

35 
40% 
44% 
50 
55 

55 
63 
70 
78 
86 

79 
91 
100. 
112 
124 

105 
122 
134 
150 
165 

8 
7 
€ 
5 
4 

.165 
.180 
.203 
.220 
.238 

123 
134 
151 
164 
177 

61 
67 
75% 
82 
88% 

96 
105 
118 
128 
138 

138 
161 
170 
184 
199 

184 
201 
227 
246 
266 

3 
2 

0 

.259 
.284 
.300 
.340 

193 
211 
223 
253 

96 
105% 
111% 
126% 

151 
165 
174 
198 

217 
238 
251 
285 

289 
817 
335 
380 

Approj 

&  in.  thi 
%  in.  thi 
%  in.  thi 
%  in.  thi 
1    in.  thi 

The* 
The  circu 
To  A 
piece,  mi 
multiply 
Thes 
practice. 

amate  Weight  of  Sheet  Copper  per  Square  Foot  in 
of  an  Inch 
:k  ,  ,....,        ..3      Ibg 

i  Fractional  Parts 

.  to  the  square  foot 
.  to  the  square  foot 
.  to  the  square  foot 
.  to  the  square  foot 
.  to  the  square  foot 

multiplied  by  0.7854. 
ied  by  3.1416. 
f  cubic  inches  In  th« 
?ht  in  pounds.    Ort 
nds  per  square  foot, 
xrast  be  expected  in 

< 

:k  6      Ibs 

:k  12      Ibs 

:k  24      Ibs 

:k  46%  Jbs 

irea  of  a  circle  is-equal  to  the  square  of  the  diameter 
inference  of  a  circle  is  equal  to.  the  diameter  multip 
scertain  the  Weight  of  Copper  —  Find  the  number  ol 
iltiply  by  0.3214,  and  the  product  will  be  the  wei 
the  length  and  breadth  (in  feet)  and  that  by  the  pou 
B  weights  are  theoretically  correct,  but  variations  i 

FIGURE  No.  66 
Method  of  recording  information  on  sheet  copper. 


136  STORING 

ally  be  accepted  without  reservations.  But  at  the 
same  time  it  must  not  be  forgotten  that  catalogues  are 
advertising  mediums,  and  advertisements  cannot  al- 
ways be  taken  at  their  face  value.  Catalogues,  there- 
fore, which  contain  general  statements  praising  the 
articles  described  must  often  be  considered  as  rating 
them  above  par,  although  it  must  be  admitted  that 
the  modern  tendency  in  catalogues  is  towards  exact- 
ness in  the  claims  made. 

However,  the  catalogues  are  useful  and  a  good 
library  should  be  accumulated.  The  storeroom  stands 
between  the  shop  and  the  purchasing  agent  in  indus- 
trial concerns,  and  there  are  many  times  in  which 
the  storekeeper  is  able  to  help  out  both  departments. 
A  case  in  point  was  in  connection  with  some  small 
brass  rivets  required  by  the  shop  for  a  special  job 
in  a  hurry.  A  requisition  for  10,000  of  these  with 
oval  heads  3/32  of  an  inch  in  diameter  and  5/16  of  an 
inch  long  was  sent  to  the  storeroom.  Not  being  an 
article  usually  carried  in  stock,  a  requisition  was  made 
on  the  purchasing  agent  to  buy  them. 

After  several  days'  fruitless  work  the  purchasing 
agent  abandoned  the  search  for  the  article  making 
the  statement  that  such  a  size  could  not  be  obtained 
from  stock  and  that  the  exigencies  of  the  production 
department  would  not  permit  of  its  waiting  to  have 
them  made.  This  result  was  reported  back  to  the 
storeroom  and  it  came  to  the  attention  of  the  assist- 
ant storekeeper,  who,  on  referring  to  catalogues,  found 
that  escutcheon  pins  could  be  obtained  in  the  size 
required.  On  reporting  this  to  the  production  depart- 
ment it  immediately  decided  these  would  answer  the 
purpose  and  the  difficulty  was  overcome. 


THE  STORES  DEPARTMENT 


137 


O    Q 


O    O 


STAR  HACK  SAW  BLADES  AND  MACHINES 

HACK  SAW  BLADES  FOR  HAND  USE 


Fig.  11279A 

These  blades  are  made  from  the  highest  grade  of  steel  according  to  a  special 
formula.  They  are  perfectly  toothed  with  a  patent  set,  scientifically  designed  and  cor- 
rect as  to  width,  thickness  and  number  of  teeth  to  the  inch. 


teeth 


14,  24 
14,  24 
14,  24 
14,  24 


Weight 

Gross 
Pounds 


Price 

Gross 

7.00 
7.50 
8.00 
9.00 


Inches 


llxHx.022 


Teeth 
InPc'n 
14,  24 
14,  24 


Weight 


Pounds 


Pric. 


Packed  ^  gross  in  a  pasteboard  box. 


10.00 
11.00 
12.00 
15,00 


HACK  SAW  BLADES  FOR  POWER  USB 


11279B 


12x 

12x 

12x 

12x1 

14x 

14x 


x.049 


14.40 
15.00 
18.00 
28.80 
18.00 
21.60 


14xlx.049 
17xlx.049 
17xlx.065 
24xlx.049 
24xlx.065 


28 
84 
45 
48 


Inch  Gauge ;*-..,;., 

Packed  in  Pasteboard  Box 


.032 


31.20 
36.00 
39.00 
60.40 
54.00 


.065 

K 


C6NTRACT  WITH 
DATE— 


EXPIRES. 


AVERAGE   MONTHLY   CONSUMPTION. 


ORDERS    PLACED 


FIGURE  No.  67 
This  shows  method  of  recording  contract  date  and  consumption. 


138 


STORING 


o  o           o   o 

WEIGHT  OP 

WIRE 
COPPER,  BRASS,  IRON  AND  STEEL 

Diameter*  Determined  by  Brown  &  Sharpe  Gauge 

No.  of  gauge 

Decimal  equiv., 
inch 

Weight  of  wire  per  1000  linear  feet 

Wrought  iron, 
pounds 

Steel, 
pounds 

Copper, 
pounds 

Brass, 
pounds 

0000 
000 
00 
0 

.46000 
.40964 
.36480 
.32486 

560.74 
444.68 
352.66 
279.67 

566.03 
448.88 
355.99 
282.30 

641.2 
508.5 
403.3 
319.8 

605.18 
479.91 
380.67 
301.82 

1 
2 
3 

6     , 

.28930 
..25763 
.22942 
.20431 
.18194 

221.79 
175.89 
139.48 
110.62 
87.720 

223.89 
177.55 
140.80 
111.66 
88.548 

253.6 
201.1 
159.5 
126.5 
100.3 

239.35 
189.82 
150.52 
119.38 
94.666 

6 
7 

9 

10 

.16202 
.14428 
.12849 
.11443 
.10189 

69.565 
55.165 
43.751 
34.699 
27.512 

70.221 
55.685 
44.164 
35.026 
27.772 

79.55 
63.09 
50.03 
39.68 
31.46 

75.075 
59.545 
47.219 
37.437 
29.687 

11 
12 
13 
14 
15 

.090742 
.080808 
.071961 
.064084 
.057068 

21.820 
17.304 
13.722 
10.886 
8.631 

22.026 
.     17.468 
13.851 
10.989 
8.712 

24.95 
19.79 
15.69 
12.44 
9.869 

23.549 
18.676 
14.809 
11.746 
9.315 

16 
17 
18 
19 
20 

.050820 
.045257 
.     .040303 
.035890 
.031961 

6.845 
6.427 
4.304 
2.413 

2.708 

6.909 
5.478 
4.344 
3.445 
2.734 

7.827 
6.207 
4.922 
3.904 
3.096 

7.587 
5.857 
4.645 
3.684 
2.920 

21 
22 
23 
24 
25 

.028462 
.025347 
.022571 
.020100 
.017900 

2.147 
1.703- 
1.350 
1.071 
.8491 

2.167 
1.719 
1.363 
1.081 
.8571 

2.455 
1,947 
1.544 
1.224 
•  .9710 

2.317 
1.838 
1.457 
1.155 
.9163 

26" 
27 
28 
29 
30 

.   ..01594 
.014195 
.012641 
.011257 
.010025 

.6734 
.5340 
.4235 
.3358 
.2663 

'    .6797 
.5391 
.4275 
.338*9 
.2688 

.7700 
.6107 
.4843    , 
.3841 
.3046 

.7267 
.5763 
.4570 
.3624 
.2874 

31 
32 
33 
34 
35 

.008928 
.007950 
.007080 
.006304 
.005614 

.2113 
.1675 
.1328 
.1053 
.08366 

.2132 
.1691 
.1341 
.1063 
.08445 

.2415 
.1915 
.1519 
.1205 
.09553 

.2280 
.1808 
.1434 
.1137 
.09015 

36 
37 
39 
39 
40 

.005000 
.004453 
.003965 
.003531 
.003144 

.06625 
-.05255 
.04166 
.03305 
.02620 

.06687 
.05304 
.04205 
.03336 
.02644 

.07576 
.06008 
.04765 
.03778 
.02996 

•  .0715 
.05671 
.04496 
.03566 

.02827 

Specific  gravity 
Weight  cubic  foot 

7.7747 
485.874 

7.848 
490.45 

8.900 
555.6 

8.461 
528.2 

These  weights  are  theoretically  correct,  but  variations  must  be  expected  in 
practice. 

FIGURE  No.  68 
Recording  information  regarding  weight  of  wire. 


THE  STORES  DEPARTMENT 


139 


O 


o  o 


Steel  Collars 

With  or  Without  Set  Screw. 


Shaft 

Shaft 

Diam. 

List 

Diam. 

Width 

Diam. 

List 

Diam. 

Width 

Inches 

Price 

Inches 

Inches 

Inches 

Price 

Inches 

Inches 

it 

$  .60 

1% 

il 

3*1 

$5.50 

5tt 

i% 

Ii8« 

.80 

2 

% 

4& 

6.00 

6& 

l'/8 

14 

.90 

2* 

11 

4tf 

7.25 

611 

2 

i& 

1.00 

2& 

1 

5% 

8.50 

7% 

2 

Itt 

1.25 

2tt 

1 

57/8 

10.00 

778 

2 

m 

1.60 

3 

1% 

6% 

12.50 

8% 

2 

2A 

1.90 

3& 

1% 

6% 

14.00 

944 

2% 

2& 

2.40 

3tt 

1% 

8 

19.50 

ioy4 

2% 

2tt 

2.70 

4% 

1% 

9 

25.00 

11% 

2% 

2{| 

3.00 

4& 

iy2 

10 

32.00 

12% 

2% 

3T7ff 

4.50 

5A 

Hi 

ORDERS    PLACED 

FIGURE  No.  69 
Extract  from  catalogue  with  data  on  steel  collars. 


140 


STORING 


Probably  great  changes  will  take  place  in  the  method 
of  compiling  and  issuing  catalogues  in  the  near  future. 
In  fact,  the  change  has  commenced,  but  so  little  has 
yet  been  done  that  it  does  not  carry  much  weight. 
There  is  no  good  reason  why  such  a  large  variety  of 
sizes  should  exist  or  why  there  should  be  so  little 
uniformity  in  their  compilation.  Why  are  some 


ARTICLE   OR 
MATPRIAL 

MANUFACTURER 

ADDRESS 

SECTION 

CAT.    NO. 

FIGURE  No.  70 
Index  card  for  catalogues,  size  3x5  inches. 

printed  with  the  index  in  the  front  and  others  with  it 
in  the  back?  Why  do  some  have  prices  attached 
and  others  have  separate  price  lists? 

Uniformity  in  these  particulars  would  make  cata- 
logues much  more  valuable,  or  at  least  more  con- 
venient for  reference.  This  of  itself  would  increase 
their  value,  because  of  the  greater  ease  in  referring  to 
them.  A  very  wide  movement  is  on  foot  to  standard- 


THE  STORES   DEPARTMENT  141 

ize  catalogues.  The  eventual  outcome  of  this  move- 
ment will  probably  be  the  adoption  of  the  bulletin 
form  of  standard  size,  each  bulletin  describing  one 
machine  or  article.  This  form  has  already  been  put 
in  force  by  many  manufacturers. 

The  best  method  of  filing  catalogues  is  to  group 
them  according  to  size.     Owing  to  the  lack  of  uni- 


NAME   OF 
MANUFACTURER 


ADDRESS 


SECTION 


CAT.  NO. 


LIST   OF    MATERIAL    MANUFACTURED 


FIGURE  No.  71 
Index  card  for  catalogues  under  name  of  manufacturer. 

formity  in  size  already  alluded  to,  catalogue  filing  is 
loose,  ragged,  and  uneconomical  at  best  as  far  as  space 
conditions  are  concerned.  But  until  this  defect  is 
remedied  the  best  that  can  be  done  is  to  group  the 
sizes.  If  attempts  are  made  to  group  in  subjects, 
all  the  disadvantages  named  are  aggravated.  A  good 
cross  index  should  be  kept,  as  indicated  in  Figures 
70  and  71. 


142  STORING 

Charts  and  Diagrams 

Some  very  useful  charts  can  be  kept  by  the  store- 
keeper, especially  if  he  is  in  control  of  all  supplies. 
He  can,  for  instance,  keep  a  chart  of  cotton  waste 
used  showing  increase  or  decrease  in  consumption, 
made  by  any  change  in  the  quality  used.  This  applies 
also  to  lubricating  oils,  files,  and  innumerable  small 
tools.  Of  course  it  is  not  intended  to  suggest  the 
charting  of  things  not  worth  while,  but  charts  are  much 
more  illuminative  than  mere  figures  and  they  take 
very  little  time  to  prepare. 

Possibly  these  charts  or  diagrams  might  be  extended 
to  advantage  to  some  of  the  raw  materials,  but  this 
may  be  going  somewhat  beyond  the  storekeeper's 
province.  Anyhow  they  would  show  beyond  a  ques- 
tion of  doubt  just  when  consumption  was  greatest 
and  when  it  was  lowest.  These  fluctuations  are 
important,  because  if  there  are  wide  fluctuations 
during  the  course  of  the  year  in  the  demand  for  mate- 
rial the  storekeeper  should  know  it  in  order  to  specify 
the  correct  delivery  dates  in  his  requisition  to  the 
purchasing  agent. 

Personnel  of  the  Stores  Department 

Only  a  general  outline  of  the  employees  necessary 
for  this  work  can  be  given,  because  of  the  great  vari- 
ation in  the  amount  of  work  to  be  done.  Some  very 
large  concerns  may  have  much  less  actual  storeroom 
work  than  smaller  concerns.  This  is  because  of  the 
nature  of  the  product  manufactured.  The  class  of 
storing  which  involves  an  enormous  amount  of  detail 
work  is  that  in  which  the  product  is  made  up  of  an 
infinitesimal  number  of  small  parts,  many  of  these 


THE  STORES  DEPARTMENT 


143 


s  pu  n  o<j 


144  STORING 

parts  being  themselves  composed  of  more  than  one 
kind  of  material. 

Some  establishments  have  factories  or  warehouses 
located  in  different  parts  of  the  country  with  a  general 
storekeeper  who  supervises  the  storerooms  in  each 
locality,  having  an  assistant  or  man  in  charge  at  each 
place.  If  these  are  not  separated  too  widely  it  may 
be  possible  to  keep  the  clerical  records  in  one  central 
office.  This  would  depend  to  a  large  extent  on  the 
arrangements  made  for  cost-keeping  and  accounting 
work.  If  these  could  be  centralized,  then  it  is  quite 
possible  to  follow  the  same  course  with  the  final  stages 
of  the  stores  clerical  work,  that  is,  the  perpetual  in- 
ventory. 

The  clerical  work  itself  naturally  varies  greatly, 
because  of  the  difference  in  the  product  as  already 
stated.  For  instance,  one  concern  may  make  20 
deliveries  from  the  stores,  while  another  concern 
equally  large  and  doing  as  much  or  more  business  may 
make  only  one  delivery.  The  author  recently  in- 
vestigated the  methods  used  in  a  stores  where  over 
70,000  items  were  carried  in  stock,  while  in  another 
there  were  only  about  3000,  yet  these  two  concerns 
were  doing  in  dollars  and  cents  practically  the  same 
amount  of  business  annually. 

There  are  certain  fundamentals  in  storage  work 
which  must  be  observed.  It  is  impossible  to  get  away 
from  them  if  the  work  is  to  be  done  properly,  irrespec- 
tive of  the  size  of  the  concern.  These  will  be  outlined, 
but  in  considering  these  the  fact  should  be  kept  con- 
stantly in  the  foreground  that  nowhere  is  orderliness, 
system,  and  cleanliness  more  essential  than  in  the 
storeroom.  Some  shops  may  get  through  a  vast 


THE  STORES  DEPARTMENT 


145 


146  STORING 

amount  of  work  with  very  untidy  conditions,  and  the 
output  may  not  suffer  from  this  condition,  but  not 
so  in  the  storeroom.  Damage,  deterioration,  and 
irregularities,  involving  losses  which  can  only  be 
estimated,  will  occur  if  the  storeroom  is  not  kept 
clean  and  orderly.  There  should  be  a  place  for  every- 
thing and  everything  in  its  place.  To  accomplish 
this  one  must  have  assistants  who  are  themselves 
clean  and  orderly.  They  must  be  methodical,  but 
at  the  same  time  alert.  The  storeroom  is  too  often 
looked  upon  as  a  lounging  place.  Some  workmen 
and  messengers  like  to  go  there  for  material,  because 
of  the  opportunity  it  offers  for  loafing  for  a  few  min- 
utes. The  storeroom  help  can  largely  obviate  this 
by  promptness  in  filling  their  requirements. 

Outline  of  Work 

In  subsequent  chapters  it  is  proposed  to  discuss 
in  detail  all  features  of  the  routine  work  of  a  store- 
room. For  a  comprehensive  appreciation  of  what  this 
work  covers  the  reader  is  referred  to  the  accompany- 
ing diagram  (Figure  73).  In  explanation  of  this  the 
main  features  are  enumerated  as  follows: 

1.  When  any  material  arrives  some  form  of  receipt 

must  be  given  for  it  and  some  form  of  record 
must  be  made  of  its  arrival  in  the  establishment. 

2.  There  must  be  some  form  of  inspection  and 

examination.  Goods  may  be  received  in 
packages  or  some  form  of  container  and  an 
acknowledgment  given  for  the  receipt  of  so 
many  packages,  but  later  the  contents  must 
be  scrutinized  and  checked  with  the  shipper's 
statement. 


THE  STORES  DEPARTMENT  147 

3.  The  goods  must  be  passed  along  to  their  ultimate 

destination.  This  may  be  a  separate  ware- 
house, or  it  may  be  the  storeroom  adjacent 
to  the  receiving  room,  or  the  material  may 
pass  directly  into  the  shop  for  immediate 
use  in  production  work. 

4.  The  goods  must  be  placed  on  shelves  or  racks 

or  in  bins,  drawers,  or  other  receptacles  in 
the  respective  places  already  assigned  to 
them. 

5.  Proper  entries  must  be  immediately  posted  on 

the  stores  records  of  the  receipt  and  dis- 
position of  the  goods. 

6.  Requisitions  will  come  in  for  the  withdrawal 

of  material  from  stores;  these  must  be  exam- 
ined for  authenticity  and  accuracy. 

7.  If  the  material  is  in  the  stores,  it  must  be  de- 

livered promptly  and  in  good  order. 

8.  Proper  entries  must  be  made  immediately  on 

the  perpetual  inventory  of  the  withdrawal 
from  the  stores. 

9.  Requisitions  should  be  sent  promptly  to  the 

purchasing  agent,  with  instructions  to  buy 
such  material  as  may  be  required,  but  which 
is  not  ordinarily  kept  in  the  stores. 
10.  Requisitions  should  be  sent  to  the  purchasing 
agent  daily,  with  instructions  to  buy  regular 
stores  material,  which  on  account  of  the 
withdrawals  has  passed  the  minimum  point 
which  has  been  predetermined. 


CHAPTER  X 
RECEIVING  MATERIAL 

The  Delivery  Point 

EVERY  order  placed  for  material  should  specify 
a  place  of  delivery.  If  goods  are  bought  lo- 
cally the  seller  may  deliver  at  the  buyer's  warehouse, 
factory,  or  place  of  business,  or  the  sale  may  have 
been  f.  o.  b.  the  seller's  warehouse.  In  the  latter 
case  the  buyer  must  arrange  to  get  the  goods  to  their 
ultimate  destination.  In  the  case  of  material  pur- 
chased from  a  seller  located  at  some  distance  from  the 
buyer's  place  of  business  the  delivery  point  may  be 
either  f.  o.  b.  point  of  shipment  or  f.  o.  b.  destination. 

There  are  other  variations  in  stipulating  delivery 
points;  but  wherever  this  point  may  be,  it  is  the 
place  where  ownership  of  the  material  passes  from 
the  seller  to  the  buyer.  The  seller,  therefore,  has 
fulfilled  his  part  of  the  contract  by  delivering  the 
material  to  the  transportation  company  at  the  point 
named.  This  point  may  be  several  hundred  miles 
from  the  buyer's  place  of  business,  and  if  the  material 
should  be  lost  or  damaged  in  transit  subsequent  to  the 
delivery  being  made,  the  buyer  would,  nevertheless, 
have  to  pay  for  it. 

Questions  regarding  delivery  do  not  usually  come 
within  the  scope  of  the  storekeeper's  work,  but  occa- 
sionally the  regulations  of  an  organization  call  for  the 
storekeeper  to  take  charge  of  material  at  the  delivery 


RECEIVING  MATERIAL  149 

point  and  get  it  transported  to  its  final  destination. 
It  is  necessary,  therefore,  to  make  some  reference  to 
these  questions.  The  principal  fact  to  be  borne  in 
mind  is  that  the  delivery  point  specified  is  the  place 
at  which  ownership  passes  to  the  buyer,  and  that  any 
transportation  or  trucking  company  receiving  mate- 
rial at  that  point  simply  acts  as  agent  for  the  owner. 

Tracing  Shipments 

In  Chapters  Two  and  Three  storeroom  economics 
were  discussed  from  many  angles,  and  many  of  the 
factors  outlined  in  that  discussion  apply  equally  to 
material,  whether  in  transit  or  in  the  stores.  These 
points  should  be  given  due  consideration  and  the 
material  followed  up  closely  to  avoid  delays.  In  the 
case  of  local  deliveries  it  may  be  found  advisable  to 
have  one's  own  trucking  system,  or  arrangements 
must  be  made  to  have  the  sellers  deliver  the  goods  to 
some  reliable  local  expressman.  When  the  deliveries 
are  made  to  railroad,  steamship,  or  express  companies 
it  is  imperative  for  the  man  who  is  going  to  follow  up 
the  goods  to  have  documentary  evidence  of  shipment, 
that  is,  a  bill  of  lading  or  express  receipt.  In  case 
of  delays  these  are  needed,  because  the  particulars 
on  these  documents  must  be  quoted  when  making 
inquiries. 

In  all  work  connected  with  tracing  shipments  dis- 
crimination should  be  used.  There  are  too  many 
requests  made  on  the  transportation  companies  to 
trace  shipments,  and  if  no  discretion  is  used  in  making 
the  requests  they  will  be  disregarded.  Some  buyers 
will  insert  a  clause  on  all  orders  reading  "Ship  and 
trace/ '  and  insist  on  a  tracer  being  put  on  all  shipments 


150  STORING 

as  soon  as  they  are  made.  This  is  not  good  practice,  for 
a  sufficient  amount  of  time  should  be  allowed  to  elapse 
to  permit  material  to  reach  destination,  and  if  it  does 
not  show  up  promptly  a  tracer  should  then  be  started. 

Getting  Delivery 

Securing  delivery  of  material  or  "following  up" 
an  order,  as  it  is  generally  termed,  is  work  that  usually 
comes  within  the  purchasing  routine,  but  there  are 
cases  where  a  storekeeper  may  have  to  take  care  of 
following-up  orders  placed  for  the  storeroom.  In 
a  manufacturing  plant  the  production  department 
looks  to  the  storeroom  to  supply  its  needs,  and  the 
storeroom  looks  to  the  purchasing  agent  to  buy  what 
it  requires  and  usually  to  get  delivery,  but  in  the 
case  of  an  establishment  having  several  factories  in 
different  parts  of  the  country,  with  a  central  purchas- 
ing department,  considerable  time  is  consumed  if  the 
storekeeper  in  a  far  distant  factory  applies  to  the 
purchasing  agent  for  information  regarding  delivery. 
He  can  do  this  himself  in  certain  instances,  particu- 
larly in  those  cases  where  the  supplier  is  located  nearer 
to  the  factory  than  to  the  purchasing  agent's  office. 

It  is  exceedingly  difficult  to  get  satisfactory  results 
with  follow-up  work,  because  the  shippers  are  lavish 
with  promises  and  tardy  in  performances.  Promises 
are  intangible  at  best,  although  some  concerns,  jeal- 
ous of  their  reputations,  will  strictly  live  up  to  them. 
This,  however,  is  the  exception  and  not  the  rule. 
Because  one  has  a  promise  of  shipment  one  cannot 
sit  back  at  ease.  These  promises  must  be  converted 
into  performances  and  the  material  obtained  when  it 
is  needed. 


RECEIVING  MATERIAL  151 


FORM  04  (REV.  5-5-1  •) 

FOLLOW  UP  ON  MATERIAL  ORDERS 


TO  DATE. 


PLEASE   ADVISE   BELOW   WHEN  OUR  NO. 

YOU        WILL        SHIP       MATERIAL 

SPECIFIED      ON      OUR      ORDER  *       YOUR  NO. 


DATE. 


SHOP  NO 


OTIS  ELEVATOR  COMPANY 

OFFICE 


REPLY  (DO  NOT  DETACH  FROM  ABOVE) 

DAT  E . 


THE  ABOVE  ORDER SHIPPED 


VIA 


REMARKS: 


SIGNED. 


FIGUKE  No.  74 
Form  for  requesting  information  regarding  shipment  of  material. 


152  STORING 

Following  up  an  order  means  that  the  intent  and 
purpose  of  the  order  must  be  followed  to  their  logical 
conclusion  by  the  delivery  of  the  goods.  The  store- 
keeper should  be  furnished  with  a  copy  of  the  pur- 
chasing agent's  order,  which  should  specify  the  time 
and  place  of  delivery.  There  are  two  ways  in  which 
the  storekeeper  can  handle  these  copies  of  orders. 
He  can  keep  them  in  numerical  sequence  or  segregate 
them  under  the  dates  on  which  deliveries  are  required, 
or  are  to  be  made.  For  instance,  if  he  has  some  orders 
which  call  for  delivery  on  the  20th  of  the  month, 
he  should  place  these  in  a  folder  or  pigeon  hole  for 
attention  a  week  to  ten  days  in  advance  of  that  date. 
Possibly  some  orders  may  need  more  time  than  this. 
The  main  thing  is  to  get  some  assurance  of  as  positive 
a  nature  as  possible  as  to  shipment.  A  form  can  be 
used  similar  to  Figure  74  for  the  preliminary  inquiry. 
If  this  fails  to  bring  the  desired  answer  it  can  be  fol- 
lowed by  a  similar  form  stamped  "  Second  request, 
please  answer."  If  the  material  is  very  urgently 
needed  a  courteously  worded  letter  may  be  substituted 
for  the  second  inquiry  form;  if  a  third  inquiry  is 
necessary  it  should  always  be  used. 

If  the  routine  outlined  is  followed  with  discretion 
and  useless  and  trivial  inquiries  eliminated,  good  re- 
sults can  usually  be  obtained.  There  are  exceptional 
cases,  however,  which  require  exceptional  treatment. 
In  the  recent  strenuous  times  many  large  concerns 
have  found  it  necessary  to  keep  several  men  out 
traveling  to  the  seller's  factories  to  follow  up  orders 
and  secure  delivery.  Some  concerns  are  very  free 
with  promises,  but  give  little  regard  to  living  up  to 
them.  The  writer  has  before  him  now  four  letters 


RECEIVING  MATERIAL  153 

from  a  large  manufacturing  concern  and  signed  by  an 
officer  of  the  company  giving  the  most  definite  assur- 
ances regarding  shipment  of  material.  These  letters 
are  dated  about  ten  days  apart,  all  refer  to  the  same 
material,  all  are  facile  and  easy  in  style,  and  all  name 
a  different  shipping  date,  which  is  usually  specified 


Date     ......  .         _  191 


Your  requisition  number 


has  arrived.    Material  is  now  in  the  storehouse. 


S/ortfceper. 

O.  Pur.  11-6M  3-18.  C.P.Co. 


FIGURE  No.  75 
Form  for  notifying  departments  that  material  has  arrived. 

as  two  or  three  days  subsequent  to  the  date  of  the 
letter.  None  of  these  promises  were  kept  and  in  such 
cases  some  other  source  of  supply  must  be  found. 

Receiving  Material  at  Destination 

All  materials  and  articles  on  arrival  at  the  pur- 
chaser's place  of  business  must  have  a  record  made  of 
their  arrival.  They  must  undergo  some  form  of  in- 
spection or  examination,  and  must  be  passed  along 
to  their  temporary  resting  place  in  the  storeroom  or  to 
the  place  where  they  are  to  be  utilized  for  production 
work  or  otherwise,  as  the  case  may  be. 


154 


STORING 


RECEIVING  MATERIAL  155 

In  some  small  establishments  it  may  be  found  ad- 
visable to  receive  and  inspect  incoming  material  in 
the  storeroom  or  in  connection  with  the  shipping  room. 
Some  concerns  may  have  a  separate  receiving  room, 
but  have  the  inspection  done  in  the  storeroom.  There 
is  this  fact  to  be  considered,  that  many  goods  and  par- 
ticularly small  articles  are  in  some  form  of  package 
or  container,  and  the  person  receiving  these  can  only 
record  the  receipt  of  so  many  barrels,  boxes,  bags, 
and  so  on  as  the  case  may  be,  unless  they  are  opened 
and  the  contents  counted,  weighed,  or  measured,  as 
might  be  necessary.  In  those  establishments  where 
the  movement  of  goods  is  frequent  enough  to  warrant 
it,  it  is  certainly  preferable  to  separate  the  activities 
of  receiving,  inspecting,  and  storing.  Even  in  small 
establishments,  if  such  work  is  all  done  by  one  man, 
the  three  functions  are  separated  and  distinct  and  will 
be  discussed  in  that  manner. 

Owing  principally  to  differences  in  accounting 
methods,  some  receiving  clerks  report  to  the  account- 
ants office  and  others  to  the  purchasing  department. 
It  is  better  for  them  to  be  independent  of  any  depart- 
ment, because  their  work  brings  them  into  contact 
with  the  stores,  purchasing,  and  accounting  depart- 
ments, and  it  is  desirable  not  to  have  their  movements 
controlled  by  any  one  of  these  departments.  They 
can  then  serve  them  all  with  equal  fairness. 

The  receiving  clerk  should  be  advised  of  what 
goods  are  coming  in.  The  best  way  to  accomplish 
this  is  to  furnish  him  with  a  copy  of  all  orders  issued. 
It  is  contended  by  some  persons  that  if  the  receiving 
clerk  did  not  have  this  information  he  would  more 
carefully  check  incoming  material,  but  it  is  not  good 


156  STORING 

policy  to  keep  him  in  ignorance  on  this  point,  because 
he  might  receive  material  in  excess  of  the  quantity 
ordered  or  material  not  ordered  at  all,  or  which  had 
been  cancelled.  When  such  occurrences  do  happen 
it  necessitates  referring  the  matter  back  to  the  shipper. 
This  frequently  results  in  long  negotiations  and  in- 
volves expense  in  returning  the  materials,  besides  the 
inconvenience  and  disorganization  entailed  in  making 
the  adjustment.  In  those  establishments  formed  on 
departmental  lines  it  is  essential  for  the  receiving  clerk 
to  know  to  which  department  the  material  belongs,  if 
it  does  not  go  directly  into  the  storeroom. 

It  is,  of  course,  essential  for  the  receiving  clerk 
to  make  some  form  of  return  either  to  the  purchasing 
or  accounting  department  to  enable  them  to  pass  the 
invoices.  There  are  several  methods  in  vogue  for 
doing  this.  One  scheme  is  to  give  the  receiving  clerk 
a  copy  of  each  requisition  sent  to  the  purchasing  agent. 
After  the  order  is  placed  by  the  purchasing  department 
it  notes  on  the  receiving  clerk's  copy  of  the  requisition 
the  name  of  the  seller  and  the  order  number,  but  not 
the  price,  as  it  is  not  necessary  for  him  to  know  this. 
The  copy  given  to  him  bears  on  the  reverse  side  a  form 
for  recording  receipt  of  the  material  (see  Figure  77). 
This  receipt,  when  properly  filled  in,  is  returned  to  the 
purchasing  or  accounting  department  and  attached  to 
the  invoice.  This  scheme  has  one  big  defect.  Quite 
often  the  material  specified  on  a  requisition  is  ordered 
from  more  than  one  concern,  or  if  ordered  from  one 
concern  is  sometimes  delivered  in  several  installments. 
There  are  some  establishments,  however,  where  it  is 
used  with  success,  but  it  cannot  be  recommended  unless 
the  material  comes  in  in  one  shipment. 


RECEIVING  MATERIAL 


157 


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158 


STORING 


SHEET  MUST  BE  MADE  IN  THE  SPACE  BELOW.       PARTIAL  RECEIPTS  SHOULD   BE   REPORTED  ON 

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0 

RECEIVED   BY 

APPROVAL.  MIJ9T  BE  BV  MORI  OR  SXIPT.  OR  ONE  PUUY  AUTHORIZED. 

FIGURE  No.  78 
Reverse  side  of  copy  of  order  for  recording  receipt  of  material. 


RECEIVING  MATERIAL 


159 


Another  scheme  is  to  furnish  the  receiving  clerk 
with  a  copy  of  the  purchase  order  to  be  used  in  a 
similar  manner  to  the  requisition  described  in  the 
preceding  paragraph.  This  also  bears  a  form  of 


FORM     «X« 

RECD                                                              1« 

FROM 

QUANTITY 

MATERIAL. 

PUNCMAS* 

OHOBM  No 

„          ..                         RECEIVING     CLERK 

'QUALITY 

FOB 

QUANTITY 

FREIGHT 

PRICE 

MFO    NO 

EXTENSIONS 

REQ     NO 

JOB    NO 

CHARGE 

TO 

CLASS 

AMOUNT 

APPROVED 

TOTAL 

FIGURE  No.  79 
Supplementary  form  to  Figure  78  for  recording  partial  receipts. 

receipt  on  the  reverse  side,  as  illustrated  in  Figure 
78.  This  suffers  from  the  same  defect  noted  in  re- 
gard to  the  requisition.  There  is,  however,  a  point 
about  this  scheme  worth  consideration.  The  pur- 


160  STORING 

chase  orders  issued  by  a  concern  constitute  a  lot  of 
floating  obligations,  and  some  establishments  find  it 
necessary  to  keep  track  of  these  and  to  have  a  reliable 
record  as  to  when  they  are  closed.  This  is  effected 
by  the  accounting  department,  which  receives  a  copy 
of  the  purchase  order,  and  also  obtains  from  the 
receiving  clerk  his  copy  when  the  receipt  on  the  back 
is  filled  in.  This  method  gives  the  accountant  infor- 
mation as  to  all  purchase  obligations  and  he  knows 
from  the  receiving  clerk's  copy  when  each  obligation 
is  closed.  If  an  order  should  be  delivered  in  install- 
ments it  is  necessary  to  use  a  supplementary  form, 
as  shown  in  Figure  79,  for  all  deliveries  except  the 
last  one.  It  is  only  when  delivery  is  complete  that 
the  receiving  clerk  surrenders  his  copy  of  the  order. 

The  use  of  either  scheme  outlined  means  some 
duplication  of  work  for  the  receiving  clerk,  because 
he  must  make  a  record  of  incoming  material  anyhow, 
and  this  record  can  be  made  in  duplicate,  one  copy 
going  to  the  purchasing  or  accounting  department  for 
the  purpose  of  checking  invoices. 

The  system  which  is  recommended  for  recording 
receipt  of  material  is  indicated  in  Figure  80.  This 
form  should  be  in  triplicate  and  each  delivery  recorded 
on  a  separate  sheet.  The  three  copies  are  disposed 
of  as  follows.  One  is  kept  by  the  receiving  clerk  and 
filed  in  numerical  sequence,  which  should  also  be  the 
order  of  dating.  The  latter  is  important,  because 
questions  are  frequently  asked  regarding  receipt  of 
material  and  it  is  generally  the  date  which  is  given 
as  a  reference.  The  second  copy  goes  to  the  pur- 
chasing department  and  serves  as  a  notification  of 
the  delivery  of  material.  Later  it  can  be  attached 


RECEIVING  MATERIAL 


161 


RECEIVED  ON  ACCOUNT  OF  ORDER  NO.                    DATE 

FROM 

VIA                                                           F.O.B.  POINT                              FRT.  CHARGES 

QUANTITY 

UNIT 

DESCRIPTION   OF   MATERIAL 

fiifSNFn 

RECEIVING  CLERK 

INSPECTION   REPORT 

RlftNFn 

INSPECTOR 

RECEIVED   INTO   STORES                                  CHECKED  WITH    INVOICE 
R|nfjpp                                                                         SIGNED 

STOREKEEPER                                                                                        INVOICE   CLERK 

FIGURE  No.  80 
Receiving  report  in  triplicate. 


162 


STORING 


to  the  invoice.     If  this  is  strictly  followed  no  invoice 
could  ever  be  paid  twice,  neither  could  an  invoice  be 


SHIPMENTS 

DATS 

QUAMTlTt'       ' 

CAS    No. 

INITIAL 

DATE 

QUANTITY                    CAB    No.                    INITIAI. 

1 

DATE 

RECORD  OF  CORRESPONDENCE 

ACKNOWL- 
EDGED 

PBOIUSZD 

DATE 

SHIPPED 

CAK1HX      - 

DBPT. 

JOB  Ma 

FACTORY                     BRANCH  OB  CUSTOMER'S 

Q 

0            ; 

FIGURE  No.  81 
Reverse  side  of  order,  used  for  recording  shipments  and  correspondence. 

paid  for  material  not  received.  The  third  copy 
follows  the  material  to  the  inspector,  the  storeroom, 
or  other  department,  as  the  case  may  be. 


RECEIVING  MATERIAL  163 

If  material  on  arrival  is  found  not  to  be  in  accord- 
ance with  the  purchase  order,  it  should  be  immediately 
reported  to  the  purchasing  department,  so  that  it  may 
take  the  matter  up  with  the  shipper  promptly.  All 
reports  of  incoming  material  should  always  be  sent 
to  the  purchasing  department  and  other  interested 
departments  promptly,  because  one  of  them  may  be 
following  up  delivery  and  it  is  essential  for  them  to 
have  the  advice  of  its  arrival  as  quickly  as  possible. 
All  freight  or  express  charges  should  without  fail  be 
noted  on  all  receiving  reports.  This  is  important 
because  when  the  invoice  is  checked  it  is  necessary 
to  know  whether  such  charges  are  in  accordance 
with  the  terms  of  purchase. 


CHAPTER  XI 

PLACING  AND  LOCATING  MATERIAL  IN  THE 
STOREROOM 

Inspection  and  Examination 

ALL  articles  and  materials  received  into  an  estab- 
lishment must  necessarily  pass  some  kind  of 
inspection.  For  instance,  if  a  keg  of  nuts  is  received 
and  the  receiving  clerk  checks  the  weight  and  finds  it 
correct,  still  there  must  be  some  sort  of  examination 
so  that  one  may  know  that  the  nuts  are  the  right  size 
with  the  right  thread  and  that  they  conform  to  the 
order  in  all  respects,  that  is,  if  cold  punched  nuts  are 
ordered  one  does  not  want  to  receive  hot  pressed  nuts. 

Some  forms  of  inspection  need  be  only  very  casual; 
that  is,  one  can  tell  by  a  glance  whether  material  of 
certain  kinds  is  all  right.  Other  material  needs  very 
careful  examination;  it  may  need  to  be  measured  or 
gauged,  or  both,  or  put  to  some  simple  tests.  Still 
other  material  may  have  to  be  rigidly  tested  with  some 
physical  testing  machine,  or  may  have  to  pass  a  chemi- 
cal analysis.  When  material  is  to  undergo  these  forms 
of  testing  the  purchase  order  should  specify  in  what 
manner  they  are  to  be  done,  or  the  results  which  must 
be  obtained  from  the  tests. 

Another  form  of  inspection  is  that  which  takes 
place  at  the  seller's  place  of  business.  This  may  be 
done  during  the  manufacturing  process,  or  when  fin- 
ished, but  prior  to  shipment;  or  the  seller  may  make 


INSPECTING  AND  PLACING  MATERIAL        165 

and  submit  a  sample  before  proceeding  to  manufacture 
the  bulk  of  the  order.  When  such  a  sample  is  ap- 
proved it  should  be  properly  identified  with  the  order 
and  turned  over  to  the  inspector  who  is  to  examine 
the  material  on  arrival  so  that  he  can  make  exact 
comparisons  with  the  bulk.  The  need  of  inspection 
is  not  fully  realized  by  many  concerns;  it  is  too  often 
the  weakest  link  in  the  chain  of  activities  connected 
with  receiving  and  storing  material. 

Inspection  before  Delivery 

Some  large  concerns  have  men  on  their  permanent 
staff  who  are  sent  to  the  seller's  factory  or  place  of 
business  to  inspect  material  while  it  is  going  through 
the  manufacturing  process  or  when  it  is  completed 
ready  for  shipment.  In  the  latter  case  they  may  have 
to  see  it  loaded  on  to  cars.  He  should  make  his  report 
in  some  such  manner  as  indicated  in  Figure  82.  This 
method  of  inspection  is  largely  adopted  in  all  im- 
portant contracts  for  material  which  it  is  essential 
should  be  uniform  in  its  characteristics.  It  should 
also  always  be  done  in  those  cases  where  payment 
has  to  be  made  before  it  could  be  inspected  on  arrival 
at  destination,  or  when  it  has  to  be  transported  very 
long  distances.  A  concern  not  having  men  on  its 
staff  fitted  for  this  kind  of  work  can  always  secure 
the  services  of  a  reputable  firm  of  inspecting  engineers 
to  undertake  this  work. 

Inspection  after  Delivery 

The  manner  in  which  this  can  best  be  done  will 
depend  largely  on  the  way  the  work  is  allocated  in 
the  establishment.  It  can  be  done  by  the  receiving 
clerk,  if  he  has  the  time  and  the  necessary  ability; 


166  STORING 


INSPECTION   REPORT 


DATE  MATERIAL  WAS 
ORDER  NO DATE  OF  ORDER READY  FOR  INSPECTION. 


PURCHASED  FROM- 
MATERIAL 


PLACE  OF  INSPECTION. 


DATE  OF  INSPECTION DATE  REPORT  SENT  IN- 


DETAILS  OF  INSPECTION  AND  TESTS 


SIGNED- 


COPIES   OF  THIS 

REPORT   SENT  TO  REPORT  APPROVED   BY 


DATE. 


FIGURE  No.  82 
Form  used  by  inspectors  for  making  reports. 


INSPECTING  AND  PLACING  MATERIAL        167 

it  can  be  done  by  a  member  of  the  stores  department, 
or  there  can  be  an  inspection  department  independent 
of  either^In  any  case  it  should  be  done  promptly 
Rafter  the  material  arrives,  because  if  in  any  particular 
the  material  should  be  found  faulty  the  seller  should 
be  advised  without  delay.  Another  reason  why  inspec- 
tion should  not  be  postponed  is  that  if  a  sudden  call 
were  made  for  the  material  for  use  in  the  shop  and  it 
was  found  to  be  incorrect,  it  would  disorganize  the 
routine  and  probably  involve  considerable  expense  in 
making  hurried  purchases  of  the  right  material. 

The  inspection  referred  to  in  the  last  paragraph 
means  the  examination  for  any  defects,  except  those 
which  it  is  necessary  to  prove  through  a  chemical 
analysis,  or  those  which  are  carried  out  by  the  tech- 
nical staff.  Any  competent  man  accustomed  to  hand- 
ling material  can,  with  the  exercise  of  care,  discover 
superficial  flaws  and  poor  finish,  or  whether  the 
material  has  suffered  from  exposure  to  atmospheric 
conditions,  or  from  poor  packing  or  rough  handling. 
He  can  also  detect  irregularity  in  the  size  of  small 
articles  and  can  make  measurements  with  the  use  of 
simple  instruments  such  as  gauges,  calipers  and  mi- 
chrometers.  It  is  such  inspection  as  this  that  is  re- 
ferred to  here.  The  record  of  this  inspection  can  be 
made  on  the  form  illustrated  in  the  last  chapter  (Figure 
80). 

Inspection  which  calls  for  complicated  physical 
tests  or  chemical  analysis  must  be  undertaken  by 
some  firm  of  inspecting  engineers,  if  an  establishment 
does  not  have  the  apparatus  and  staff  to  do  such  work 
itself.  In  these  cases  samples  for  testing  purposes 
must  be  taken  from  incoming  material  and  be  prop- 


168  STORING 

erly  marked  or  tagged  with  the  order  number.  They 
should  then  be  sent  promptly  for  testing,  accompanied 
by  a  form  similar  to  Figure  83.  This  can  be  in 
triplicate  or  quadruplicate,  as  may  be  necessary. 
The  purchasing,  technical,  and  stores  departments 
would  probably  each  require  a  copy. 

Receiving  Material  into  Storeroom 

During  the  preceding  discussion  we  have  followed 
the  course  of  the  material  to  a  point  where  it  is  ready 
to  pass  into  the  stores  or  directly  into  the  shop.  It  is 
of  the  utmost  importance  to  efficient  storeskeeping 
that  all  articles  and  material  be  placed  in  the  recep- 
tacles assigned  to  them.  If  this  is  not  done  it  is 
exceedingly  difficult  to  keep  the  records  accurate; 
material  will  get  piled  up  until  some  more  favorable 
opportunity  presents  itself  for  disposing  of  it.  This 
means  that  it  may  get  damaged  or  mixed  with  other 
sizes.  If  material  is  allowed  to  lie  around  the  entrance 
to  the  stores,  it  is  not  unlikely  that  when  deliveries  are 
being  made  the  material  will  be  taken  from  there 
instead  of  from  the  regular  bin  or  location.  Such 
methods  can  only  lead  to  confusion  and  inaccuracies. 

It  has  been  emphasized  in  earlier  chapters  that  all 
manual  operations  must  be  maintained  at  an  equal 
degree  of  efficiency  with  the  clerical  operations.  The 
dual  nature  of  storeroom  work  requires  this.  Any 
form  of  carelessness  will  lead  to  mistakes  in  manual 
work  and  probably  the  most  common  form  is  that  of 
permitting  delays  to  occur  before  placing  articles  in 
the  locations  assigned  to  them.  When  material  is 
taken  out  of  the  bins  delays  will  not  be  tolerated, 
because  it  is  usually  wanted  at  once  and  probably 


INSPECTING  AND  PLACING  MATERIAL        169 


REPORT  OF  TEST 


DATE- 


PURCHASE  ORDER  NO 

NOTE:     REFER  TO  PURCHASE  ORDER  OR   SPECIFICATION    FOR   NATURE  OF  TEST 
THE  MATERIAL  LISTED  BELOW  IS  SUBMITTED  FOR  TESTING   PURPOSES 


STOREKEEPER 


DATE  RECEIVED       QUANTITY 


MATERIAL 


CAR  No. 


RESULT  OF  TEST 


COPIES  TO 


6IGNED. 


DATE   TEST  WAS   MADE. 


FlGTJRB   NO.  83 

Form  for  reporting  results  of  physical  or  chemical  tests. 


170  STORING 

there  is  a  messenger  or  runner  waiting  for  it.     Likewise, 
there  should  be  no  delays  in  placing  it  in  the  bins. 

Placing  Material  in  Receptacles 

The  most  important  rule  to  follow  is  to  have  a  place 
for  everything  and  keep  everything  in  its  place.  These 
places  should  be -properly  numbered  and  the  contents 
designated.  That  is,  every  article  in  the  stores  should 
have  an  address  and  this  address  should  be  entered 
in  the  stores  ledger  just  as  rigidly  as  if  it  were  the 
address  of  a  customer  in  the  sales  ledger.  It  should 
be  possible  for  a  person  unacquainted  with  the  store- 
room to  obtain  the  location  of  an  article  from  the 
perpetual  inventory,  and  then  be  able  to  go  directly 
to  that  location  without  hesitation. 

All  shelves,  racks,  bins,  or  other  receptacles  should 
be  numbered  and  all  tiers  or  sections  lettered  or  num- 
bered. Metal  flags  can  be  used  to  good  effect,  particu- 
larly in  numbering  the  sections  or  tiers.  In  addition 
there  should  be  a  card  holder  on  each  receptacle 
containing  a  card  bearing  the  name  of  the  article. 
No  matter  what  the  article  may  be,  it  has  a  name, 
a  size,  a  weight  or  some  distinguishing  characteristics, 
and  these  should  be  inscribed  on  the  card  correspond- 
ing with  the  description  in  the  perpetual  inventory. 
The  practice  of  taking  small  articles  into  the  stores, 
approaching  the  bins  where  they  are  supposed  to  go, 
extracting  one  of  its  contents,  matching  it  up  with  the 
new  articles,  and,  if  apparently  found  to  correspond, 
dumping  the  new  lot  in  with  the  old,  cannot  be  too 
strongly  condemned.  The  written  description  of  the 
incoming  material  should  be  checked  with  the  written 
description  on  the  bin  ticket. 


INSPECTING  AND  PLACING  MATERIAL        171 


Material  Returned  to  Stores 

If  for  any  reason  it  is  found  necessary  to  return 
material  to  the  storeroom  it  must  follow  the  same 
course  of  procedure  as  new  material.  That  is,  it  must 
be  accompanied  by  some  document  and  must  be  placed 
at  once  in  the  proper  receptacles. 


CREDIT  REQUISITION 

CREDIT  is  REQUESTED  FOR  THE  MATERIAL  LISTED  BELOW 

DATE                                                                                CRFDIT  TO  APPIY  ON  OROFR  No. 

QUANTITY 

MATERIAL 

SIZE 

• 

FROM  DEP'T 
DELIVERED  BY 

k|O                                                                                                         FORFMAN  _ 

———                                         RFCFIVFP  BY 

FIGURE  No.  84 
Form  for  use  when  material  is  returned  to  storeroom. 

It  is  principally  in  manufacturing  establishments 
that  it  is  found  necessary  to  return  material  to  the 
stores,  the  reasons  being  that  after  completing  an  or- 
der the  shop  may  find  it  has  a  surplus,  or  it  may  have 
been  decided  to  curtail  the  quantity  being  made. 
In  all  instances  of  this  kind  the  material  should  not 
be  allowed  to  remain  in  tne  shop,  but  should  be  re- 
turned to  the  stores  accompanied  by  a  form  similar 
to  Figure  84.  The  use  of  this  form  insures  the 


172 


STORING 


transaction  being  posted  on  the  perpetual  inventory, 
and  also  provides  for  proper  credit  being  given  to  the 
shop  order.  If  there  are  any  supplies  in  the  shop  in 
excess  of  requirements  these  should  also  be  returned. 
It  is  only,  however,  when  supplies  are  withdrawn  by 
irresponsible  persons  that  more  is  taken  out  than  is 
actually  needed  and  this  should  not  be  permitted. 


Ml 

TO  THE  S' 

CREDIT  SHOUL 

EMORANDUM  OF  SCRAP  SENT  TO  STOREROOM 

roRpKppppp                                                           DATF 

'THE  SCRAP  LISTED  BELOW  is  BEING  SENT  TO  You 
r>  OF  ftivFM  TO  n*p'T  No.                                                            ORDER  No. 

QUANTITY 

DESCRIPTION 

CONDITION 

DELIVERED  BY 

RECEIVED  INTC 

FOREMAN 

STOREKEEPER 

FIGURE  No.  85 
This  form  should  accompany  all  scrap  sent  to  storeroom. 

Scrap  Sent  to  the  Storeroom 

In  some  manufacturing  plants  scrap  is  quite  an 
important  item  and  if  it  has  to  be  kept  for  any  length 
of  time  for  utilization  in  the  plant,  or  if  it  has  to  be 
sold,  it  should  be  put  in  charge  of  the  storekeeper  so 
that  it  may  go  on  his  records.  Some  scrap  has  con- 
siderable value,  and  it  may  have  to  be  kept  some  time 


INSPECTING  AND  PLACING  MATERIAL        173 

until  a  suitable  market  is  found.  The  practice  of 
sending  scrap  to  the  shipping  room  is  not  to  be  com- 
mended, unless  it  is  already  sold  and  is  to  be  shipped 
immediately. 

The  rule  to  follow  is  to  insist  on  all  material  in 
an  establishment  being  on  the  stores  records,  except 
that  which  is  in  process  of  manipulation  in  the  shop. 
This  gives  the  stores  accounts  a  definite  meaning. 
Obsolete  material  comes  under  the  same  regulations 
as  scrap,  for  it  is  virtually  scrap  as  far  as  that  partic- 
ular plant  is  concerned.  It  is  possible  that  the  store- 
keeper might  be  charged  with  the  sale  of  scrap,  but 
preferably  it  should  be  the  purchasing  agent,  as  he  is 
in  closer  touch  with  the  markets.  If  the  latter  is  the 
case,  the  storekeeper  should  advise  him  from  time  to 
time  of  the  amount  of  scrap  he  has  on  hand  for  dis- 
posal on  a  form  similar  to  Figure  86. 

Storing  Stationery 

While  in  some  establishments  it  may  not  be  feas- 
ible for  the  general  storekeeper  to  have  charge  of  the 
stock  of  stationery,  still  there  are  many  places  where 
it  could  be  done  to  great  advantage.  There  is,  per- 
haps, more  waste  with  stationery  than  with  any  other 
form  of  supplies,  and  a  great  many  houses  keep  no 
records  whatever  of  stationery  stock,  but  it  is  handed 
out  on  a  verbal  request  from  a  cupboard  or  closet  to 
which  many  people  have  access. 

In  many  cases  it  would  be  found  that  very  important 
savings  could  be  effected  by  enforcing  a  rigid  control, 
and  if  possible  this  control  should  be  placed  in  the 
hands  of  the  general  storekeeper.  He  should  have 
charge  of  everything,  including  all  forms,  ink,  pens, 


174 


STORING 


s 

0  0 

£  z 

6  LU 

UJ    Q 
CC 

1 

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o 

1 

LU            Z 

Q             CO 
LU 
CC 

O 

fey 

NDITION 

HI  03 

Ico 

8 

zo. 

QC 

3? 

UJQ 

CO  -I 

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1-  LU- 
GO CO 

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5 

INSPECTING  AND  PLACING  MATERIAL        175 

pencils,  carbon  paper,  desk  pads,  paper  fasteners, 
etc.  Office  furniture  should  be  standardized  and 
given  form  numbers.  Form  numbers  should  also 
be  given  to  inkstands,  paper  fasteners,  pencils,  etc. 
This  is  essential  for  identification,  and  the  standard- 
ization greatly  reduces  the  number  of  varieties  hi  use. 
If  the  storekeeper  has  charge  of  the  stationery 
he  would  have  to  make  requisitions  to  purchase  fresh 
supplies,  and  to  enable  him  to  do  this  intelligently 
he  should  keep  a  copy  of  every  printed  form  used. 
These  should  be  pasted  on  loose  leaves  and  fastened 
in  a  binder.  The  loose  leaves  should  be  large  enough 
to  enable  the  name  and  number  of  the  form  to  be 
placed  at  the  top  of  the  page,  with  detailed  instruc- 
tions for  its  use  at  the  bottom.  A  record  such  as  this 
is  extremely  valuable,  because  it  eliminates  useless 
forms  and  prevents  duplication.  It  also  is  very 
useful  for  the  education  of  new  employees  in  the 
proper  use  of  forms  they  come  in  contact  with.  A 
duplicate  can  be  made  for  use  in  the  purchasing  de- 
partment as  a  help  in  buying.  Very  little  work  is 
involved  in  keeping  such  a  record  up  to  date,  and  its 
usefulness  will  amply  repay  the  small  amount  of  labor 
entailed  in  compiling  it. 

Storing  Finished  Product 

The  preceding  discussion  has  been  confined  to  raw 
material  and  supplies,  but  there  is  another  class  of 
material  which  has  to  be  stored  and  that  is  the  fin- 
ished parts  or  finished  product  of  a  plant.  In  some 
establishments  these  are  kept  in  storerooms  entirely 
separate  from  the  raw  material,  while  in  others  they 
may  be  stored  in  the  same  or  adjacent  rooms.  Practi- 


176  STORING 

cally  every  consideration  from  an  economic  viewpoint 
which  applies  to  raw  material,  as  discussed  in  Chapters 
Two  and  Three,  applies  equally  to  finished  product. 

The  only  difference  between  raw  and  finished  mate- 
rial is  in  regard  to  the  manner  in  which  it  should  be 
handled  or  the  location  it  should  occupy.  Finished 
material  may  be  the  product  of  a  factory,  such  as 
screws  or  nails  in  regulation  packages  ready  for  ship- 
ment, or  it  may  be  completely  assembled  articles, 
such  as  desks,  or  typewriters,  or  again  it  may  consist 
of  materials  which,  together  with  other  material, 
will  ultimately  be  assembled  to  make  a  complete 
machine,  such  as  an  automobile  or  bicycle.  The  last 
class  of  finished  material  is  usually  designated  "  finished 
parts." 

As  far  as  storage  problems  are  concerned  there  is 
no  radical  difference  on  either  the  manual  or  clerical 
work  connected  with  storing  raw  or  finished  material. 
They  must  both  have  their  entry  and  exit  properly 
recorded  and  in  a  similar  manner.  There  would  in 
some  instances  be  a  saving  in  this  work  if  all  classes 
of  stores  could  be  under  the  same  control,  with  the 
storerooms  contiguous  to  each  other.  It  should, 
however,  be  recognized  that  finished  material  may 
travel  a  different  route,  both  in  going  in  and  out  of 
the  storeroom,  and  this  must  be  considered  in  decid- 
ing on  the  location.  Of  course  some  factories  send 
all  finished  parts  to  the  assembling  departments, 
but  even  so  they  have  to  be  stored  there  until  gathered 
together  to  form  the  complete  articles  or  machine. 


CHAPTER  XII 

DELIVERIES  FROM  STOREROOM 

General  Considerations 

IT  is  usually  important  that  material  and  supplies 
be  distributed  promptly  by  the  helpers  in  the 
stores,  particularly  in  manufacturing  plants.  The 
facility  with  which  this  is  done  will  depend  very  largely 
on  the  manner  in  which  the  material  has  been  placed 
in  the  racks  and  bins.  Deliveries  can  be  made  easily 
and  rapidly  from  a  well-kept  and  well-arranged  stock. 

In  the  majority  of  storerooms  the  deliveries  are 
much  more  numerous  than  the  receipts.  With  the 
larger  number  of  operations  there  is  naturally  more 
liability  to  make  mistakes.  The  applicants  for  mate- 
rial must  be  served  accurately  and  expeditiously 
and  the  transactions  must  be  posted  promptly  on  the 
records  to  enable  close  track  to  be  kept  of  the  stock. 
All  these  features  render  the  problems  connected 
with  deliveries  the  most  important  in  storeroom 
activities.  In  consequence  of  this  the  assistants  mak- 
ing deliveries  must  be  thoroughly  conversant  with  the 
stock  and  be  able  to  supply  applicants  without  delay. 
They  should  be  able  to  scrutinize  requisitions  and 
decide  quickly  whether  they  contain  all  the  requisite 
information  and  are  signed  by  a  person  duly  author- 
ized to  draw  material  from  the  stores. 

In  the  case  of  material  required  for  production 
work  there  is,  or  should  be,  complete  control  over  it 


178  STORING 

after  it  passes  out  of  the  storeroom  into  the  shop, 
and  any  waste  or  withdrawals  in  excess  of  require- 
ments should  be  quickly  discovered.  It  is  more 
difficult  to  control  supplies,  because  these  are  not 
charged  directly  to  a  production  order  and,  their 
use  being  more  general,  it  is  open  to  persons  without 
a  sense  of  responsibility  to  withdraw  more  than  is 
needed.  In  connection  with  these  it  is  essential  there 


STORE  ROOM  ORDER 
H.  W.  JQHNS-MANVDLLE  CO. 

MANVULB  PLANT 

r>ATi£ 

IWITVRR  TO  RFARKR 

TORRITRRnnW                                                                                    _ 

TOTAL 

feSST1 

Porei 

oan 

FIGURE  No.  87 
Requisition  on  storeroom. 

should  be  some  supervision,  and  it  has  been  suggested 
in  an  earlier  chapter  that  the  chief  storekeeper  could 
well  be  given  the  authority  to  regulate  the  use  of 
supplies.  Prevention  of  overdrafts  is  much  better 
than  attempts  to  rectify  them  after  being  made. 

Requisitions 

Applicants  for  material  should  never  be  permitted 
within  the  storeroom.  The  practice  of  allowing  them 
to  pick  out  from  the  stock  what  they  need  is  entirely 


DELIVERIES  FROM  STOREROOM  179 

too  common.  Many  storekeepers  compromise  by  per- 
mitting applicants  to  go  to  the  shelves  and  get  what 
they  need,  checking  the  weight  or  count  as  the  appli- 
cant passes  out  of  the  storeroom.  Such  methods  as 
this  should  not  be  tolerated.  If  a  storeroom  is  main- 
tained, then  it  should  be  operated  in  the  right  way. 


WARNER  SUGAR  REFINING  CO. 
RECEIPT 

|A    223891—1 

Received  from  Storekeeper  the  followinjp- 

OUANTITY 

srz«       -       NO' 

ARTICLES 

JO* 

VALUE 

raimnowrnoDKriVT.iurK*.  OTTO                     Signed                                                                                  _     

FIGURE  No.  88 
Requisition  on  storeroom. 

If  a  loose  system  prevails,  either  in  receiving  or  de- 
livering material,  the  storeroom  records  cannot  be 
considered  reliable. 

The  requisition  presented  to  the  storekeeper  may 
take  any  convenient  form,  but  it  must  contain  certain 
essential  features.  These  are: 

1.  The  date;  this  may  be  stamped  on  the  requisition 

when  received  if  it  has  not  already  been  inserted. 

2.  The  name  or  number  of  the  department  from 

which  it  originated. 


180  STORING 

3.  An  explicit  and  unmistakable  description  of  the 

material  required. 

4.  For  what  purpose  it  is  required. 

5.  It  must  be  signed  by  a  person  duly  authorized 

to  draw  material  from  the  stores. 

There  are  other  features  which  may  be  necessary 
in  individual  cases;  these  will  be  governed  mainly 
by  accounting  and  cost-keeping  methods.  It  is  pref- 
erable, although  not  imperative,  to  have  a  distinguish- 
ing color  for  the  requisitions  from  each  department. 
This  is  of  great  assistance  in  segregating  and  filing. 
It  is  also  advisable  to  number  requisitions,  as  they  can 
then  be  located  readily  whenever  it  is  necessary  to 
refer  to  them.  Figure  89  illustrates  a  form  of  requi- 
sition for  use  in  a  manufacturing  plant.  After  these 
have  been  duly  entered  on  the  stores  records,  it  is 
customary  for  them  to  pass  along  to  the  cost  account- 
ant, who  makes  the  proper  charges  from  them  against 
the  shop  orders.  It  is  possible,  therefore,  that  the 
cost  accountant  might  wish  the  requisitions  to  be 
uniform  with  other  documents  used  in  this  work. 

Requisitions  should  correspond  to  the  perpetual 
inventory  in  specifying  quantities.  For  instance,  if 
the  inventory  is  kept  in  units  of  weight  and  the  requi- 
sition asks  for  a  certain  number  of  the  articles,  it 
must  be  converted  into  units  of  weight  before  the 
articles  leave  the  stores.  The  bin  ticket  should  in- 
dicate in  what  manner  the  unit  is  expressed. 

Issuing  Articles  in  Sets 

There  are  a  great  many  things  manufactured  which 
require  certain  fittings  when  being  assembled.  For 
instance,  nearly  all  furniture  comes  under  this  cate- 


DELIVERIES  FROM  STOREROOM  181 

gory.     If  an  order  is  started  in  the  shop  to  make  up 
one  hundred  office  desks,  it  is  not  necessary  to  with- 


FORM     Y 

oftoen  ft 

TO  O«PT 

TO  as  ( 

•9 

MATERIAL.     REQUISITION 

MO                                      amt-t\*mm  MIYM  TMI«  OMDKW  TO  of»-r  MO 

JSEO  FC 

to 

SEC 

•  IN 

•AU 

FOREMAN 

*•-     • 

FIGURE  No.  89 
Storeroom  requisition. 

draw  the  hardware  from  the  stores  at  the  same  time  as 
the  lumber.    For  this  reason  the  storekeeper  should 


182  STORING 

know  what  orders  are  going  through  the  shop,  so  that 
he  may  be  prepared  to  supply  what  is  needed  when 
it  is  needed. 

The  lumber  for  the  desks  having  passed  through 
the  manufacturing  stages  up  to  the  point  where  it  is 
assembled,  a  requisition  can  then  be  made  for  the 
hardware.  In  writing  this  up  it  is  not  necessary 
to  specify  so  many  locks,  drawer  pulls,  casters,  etc. 
The  requisition  should  call  for  100  sets  of  fittings  for 
standard  desk  number  — .  Before  the  messenger  goes 
to  the  storeroom  for  them,  telephone  instructions 
should  be  given  to  get  the  sets  ready,  so  that  there 
will  be  no  delay  in  delivery.  In  all  cases  of  this  nature 
the  storekeeper  should  know  what  constitutes  a  set 
and  he  can  if  advisable  keep  his  stock  in  sets,  instead 
of  having  the  articles  separate  and  perhaps  distributed 
widely  through  the  storeroom. 

Shop  Orders  as  Requisitions 

Figure  90  illustrates  another  method  of  requisi- 
tioning material  from  stores.  This  is  a  copy  of  the 
shop  order  and  specifies  the  material  which  will  be 
required  in  executing  the  order.  It  is  particularly 
useful  in  jobbing  work  and  can  also  be  used  when  the 
material  can  all  be  withdrawn  at  one  time.  Manu- 
facturing methods  are  so  varied  and  so  many  problems 
are  met  with  which  are  largely  individual  that  no 
fixed  rules  can  be  laid  down  in  a  treatise  of  this  char- 
acter. The  point  which  it  is  desired  to  emphasize 
is  that  material  should  not  be  drawn  from  the  stores 
until  actually  needed  for  shipment,  or,  if  it  is  to 
undergo  manipulation  in  the  shop,  then  it  should  go 
directly  from  the  storeroom  to  the  work  bench  or 


DELIVERIES  FROM  STOREROOM 


183 


Board  No. 

Card  No.  Total  Cards  S.  O.  No. 

Date  Dept  No.  Cat  No. 


Dwg.No. 
Thi»Card  call,  for  tbe  Stock  item  following: 


Patten  No. 
»  D«rt.     Oeok*d  in  Depl 


'Board  No. 

Card  No.  Total  Cards  S.  O.  No. 

Date  DeptTSO.  Cat  No. 


Dwj.No.  Mk. 

Thu  card  Identifies  material  or  parts  attached  a»  the  following 


Material 

Stock  condition 
Stook  to  be  delivered 
File  date 


Pattern  No. 

Deliver  to 


OreW  Ca.d  No. 

U*4e«UI  Cud  No. 

Date  Dwg.No. 

Store  To  Dept.  No.  Delivery  Date 


FIGURE  No.  90 
The  last  section  of  this  is  used  for  withdrawing  material  from  stores. 


184  STORING 

machine,  and  not  be  withdrawn  and  permitted  to  lie 
around  the  shop. 

To  prevent  the  last-named  condition  when  the  rate 
of  progress  of  an  order  through  the  shop  is  somewhat 
uncertain,  and  at  the  same  time  to  prevent  delays  in 
delivering  from  the  storeroom,  many  storekeepers  lay 
out  the  material  specified  on  the  shop  order  and  place 
it  in  tote  boxes.  These  boxes  are  kept  in  a  section  of 
the  storeroom  with  the  order  number  marked  on  them. 
By  adopting  this  course  the  material  is  retained  under 
the  storekeeper's  control  until  ready  for  use,  and  at 
the  same  time  no  delay  would  occur  in  delivering  it 
from  the  storeroom. 

Shortages 

Throughout  the  preceding  discussion  of  deliveries 
from  stores  it  has  been  assumed  that  the  storeroom  had 
the  material  ready  to  hand  out  at  any  moment,  but 
many  instances  occur  in  which  delivery  cannot  be 
made  at  once  or  can  be  made*  only  in  part.  Owing 
to  the  difficulties  experienced  in  getting  material  from 
shippers  in  the  recent  strenuous  times  many  store- 
rooms have  run  short  of  regular  stock.  In  the  case  of 
jobbing  orders  which  may  call  for  various  odd  lots 
of  material  and  articles  seldom  called  for,  it  is  not  to 
be  supposed  that  they  can  all  be  carried  in  an  ordinary 
storeroom. 

When  a  shortage  exists  the  storekeeper  can  furnish 
such  material  as  he  has  on  hand  and  issue  a  shortage 
ticket,  as  illustrated  in  Figure  91,  for  that  which  he 
cannot  supply  at  once.  This  shortage  ticket  should 
be  in  duplicate,  one  copy  being  retained  in  the  store- 
room as  a  reminder  to  follow  up  delivery  and  obtain 


DELIVERIES  FROM  STOREROOM 


185 


rOMM  V   47 

DATE_ 

NOT    IN    STOCK 

ORDER 
PART 
REQUI* 

No 

No 

ilTIOM      No 

THE  ABOVE  SPECIFIED  ITEMS,  AS  CALLED  FOR  BV 
ABOVE  NOTED  REQUISITION  ARE  NOT  NOW  IN  STOCK 
HOLD    THIS    SLIP   UNTIL    REQUISITION    IS    FILLED 
THEN   RETURN  SLIP  TO  STOCK  ROOM 

OTIS  ELEVATOR  COMPANY 

FIGURE  No.  91 
Shortage  ticket. 


186  STORING 

quickly  the  material  to  make  good  the  shortage.  The 
other  copy  of  the  shortage  ticket  goes  to  the  shop, 
where  it  serves  the  following  purpose.  In  keeping 
track  of  the  progress  of  an  order  through  the  shop 
there  are  certain  employees  who  are  sometimes  known 
as  "  chasers/'  their  duty  being  to  follow  up  the  orders. 
When  the  chaser  finds  an  order  is  at  a  standstill  for 
lack  of  material  the  shop  must  have  a  shortage  ticket 
showing  that  it  has  applied  to  the  storeroom,  but  has 
been  unable  to  procure  the  material.  The  chaser, 
on  discovering  this  condition  in  the  shop,  will  bring 
pressure  to  bear  on  the  storekeeper  to  supply  the  de- 
ficiency. The  storekeeper  will  likewise  press  the  pur- 
chasing agent  until  the  shortage  is  made  good.  In 
the  discussion  of  maximum  and  minimum  limits  in 
Chapter  Three  the  danger  of  shortages  in  the  store- 
room was  pointed  out.  In  the  case  of  jobbing  orders 
calling  for  unusual  and  seldom-called-for  material, 
they  are  unad voidable. 

Apparent  Shortages 

When  the  production  department  of  a  factory  gives 
the  storeroom  a  schedule  of  dates  on  which  material 
will  be  needed,  or  furnishes  an  estimate  of  the  prob- 
able rate  of  consumption,  that  is  for  the  storekeeper's 
information  and  should  enable  him  to  keep  his  stock 
at  just  the  right  level  to  meet  these  requirements. 
The  actual  withdrawal  of  material  from  the  stores  would 
be  through  the  medium  of  a  requisition,  as  explained 
earlier  in  this  chapter. 

A  somewhat  different  condition  exists  when  no 
schedule  of  the  rate  of  consumption  is  given  to  the 
storeroom  and  when  the  storeroom  is  furnished  with 


DELIVERIES  FROM  STOREROOM 


187 


copies  of  the  production  orders.     These  production 
orders  take  the  place  of  requisitions  and  they  may 


Form  4 

Older 
ToDe 
To  be 

SHORTAGE  REQUISITION 

jffo.       ^            Requisition  No.  .  .  .Date.........  ...    ..            * 

pt.  No                                Deliver  with  this  Order  to  Dent.  No. 

used  for. 

r 

This  Requisition  must  be  Approved  by  Shop  Superintendent  before  Material  can 
be  drawn  from  Stock  Room. 

SEC 

BIN 

BAL 

DESCRIPTION 

Approved                                                                  Sigped 

Superintendent                                                                                                                Foreman 

FIGURE  No.  92 
Used  when  insufficient  material  has  been  drawn  from  stores. 


accumulate  to  such  an  extent  as  to  involve  quite  a 
problem  in  handling  them.     For   instance,  the  pro- 


188  STORING 

duction  orders  may  be  issued  many  months  in  advance 
of  the  actual  time  the  material  may  be  needed.  This 
creates  a  condition  where  the  storeroom  has  recognized 
and  authenticated  applications  for  material  without 
a  sufficient  quantity  being  in  stock  to  fill  them.  There 
is,  therefore,  an  apparent  shortage.  There  is  not  an 
actual  shortage,  because  the  material  is  not  always 
needed  immediately  the  production  order  is  issued. 
If  it  should  not  arrive  in  the  storeroom  before  the 
production  department  called  for  it,  then  there  would 
be  a  real  shortage. 

The  manner  in  which  this  problem  should  be  handled 
would  very  largely  depend  on  to  what  extent  it  oc- 
curs. Earlier  in  this  chapter  reference  was  made  to 
shop  orders,  and  it  was  suggested  that  the  material 
for  these  could  be  taken  out  of  the  bins  and  placed 
in  tote  boxes.  Now  it  may  happen  that  the  quantity 
so  set  aside  may  reach  undue  proportions  and  the 
storekeeper  may  feel  justified  in  abstracting  material 
from  the  boxes,  if  he  needs  it  for  other  orders,  and 
placing  shortage  tickets  in  them  to  show  that  he  has 
done  so.  He  would  keep  a  record  of  these  transactions 
through  the  copy  of  the  shortage  ticket,  which  he  would 
keep  in  his  office. 

The  result  of  this  is  that  the  material  has  been 
charged  out  twice,  but  actually  delivered  only  once, 
creating  an  " apparent"  shortage.  This  method  can 
only  be  adopted  where  there  are  few  such  transactions 
and  then  only  when  the  articles  are  small  and  can  be 
stored  in  tote  boxes. 

It  is  better  to  have  a  systematic  bookkeeping  scheme 
to  take  care  of  it.  This  can  be  done  by  having  a 
supplementary  sheet  attached  to  the  perpetual  in- 


DELIVERIES  FROM  STOREROOM 


189 


ventory  sheet,  or  an  additional  column  to  record  these 
particulars.  For  instance,  suppose  he  has  1000  units 
of  a  certain  article  in  the  stores  and  his  records  show 
that  production  orders  have  been  issued  which  will 
absorb  1500.  There  is  here  an  apparent  shortage  of 
500,  but  there  is  not  a  real  shortage,  because  the  shop 
may  not  need  the  articles  for  these  particular  orders 
for  some  weeks,  or  even  months. 


FORM  72! 

OK.DCR 
TO  DC? 
TO  BE 

XRcv.4-1-,7)    EXPENSE  MATERIAL  REQUISITION 

NO.                                             [X                               ]»*».  NO.                                  DATE 

T.  WO.                                     DELIVER  WITH  THIS  ORDER  TO  DEPT.  NO.       ,  , 

USED  FOR 

cmr. 

PAT.  SYM. 
NUMBER 
OR  SIZE 

DESCRIPTION 

• 

FOREMAN                                                                                                                , 

FIGURE  No.  93 
Requisition  for  supplies. 

Issuing  Supplies 

Everything  delivered  from  the  storeroom  which  is 
for  expense  account,  that  is,  everything  which  is  not 
for  resale  or  does  not  become  a  component  part  of 
the  finished  product,  should  be  requisitioned  on  a 
form  differing  from  that  used  for  raw  material.  This 
covers  everything  needed  for  repairs  to  buildings 
and  upkeep  of  machines,  also  all  articles  used  for 
general  shop*  expense. 

The  storekeeper  is,  perhaps,  the  best  man  to  have 


190  STORING 

t 

control  of  these  throughout  an  establishment;  that  is, 
requisitions  for  them  should  be  subject  to  his  approval. 
The  department  needing  the  supplies  should  be  speci- 
fied, and  whenever  possible  the  exact  purpose  for  which 
they  are  required.  The  closer  these  lines  can  be 
drawn  the  greater  will  be  the  saving  in  this  class  of 
overhead  expense. 

Routine  Clerical  Work 

The  discussion  of  routine  work  up  to  this  point 
has  covered  the  following  features: 

1.  The  receipt  of  material. 

2.  The  various  forms  of  inspection. 

3.  The  placing  of  material  in  properly  designated 

receptacles  and  places. 

4.  The  delivery  from  the  storeroom  to  authorized 

recipients. 

All  of  the  transactions  enumerated  must  have, 
as  has  been  shown,  .some  documentary  evidence  of 
their  accomplishment.  Samples  of  these  documents 
have  been  illustrated  in  the  two  preceding  chapters, 
and  it  now  becomes  necessary  to  show  in  what 
manner  they  are  permanently  recorded.  In  Chapter 
Eight  the  perpetual  inventory  was  fully  discussed. 
This  is  the  complete  stores  record  or  ledger.  By 
referring  to  the  illustrations  given  of  perpetual  in- 
ventories (see  Figures  60,  61,  62,  and  64)  it  will  be 
noticed  that  the  form  can  be  simply  a  record  of  re- 
ceipts and  deliveries,  or  it  can  cover  many  other 
features,  such  as  quantities  ordered  but  not  received, 
quantities  requisitioned  but  not  delivered,  etc. 

Every  entry  on  the  inventory  must  have  a  document 
to  show  for  it.  For  instance,  the  receiving  clerk's 


DELIVERIES  FROM  STOREROOM  191 

slip  would  be  used  to  post  the  quantity  received,  the 
requisitions  would  be  used  to  post  the  quantities  de- 
livered, a  copy  of  the  purchase  order  would  indicate 
the  material  ordered.  There  are  some  other  forms 
which  will  be  alluded  to  later.  What  it  is  desired  to 
emphasize  is  that  all  these  documents  must  be  jealously 
safeguarded  until  recorded.  Even  after  this  they 
should  be  kept  in  suitable  binders  until  such  time  as 
there  is  no  possibility  of  any  need  to  refer  to  them. 
There  are  few  factors  which  would  tend  to  disorganize 
the  keeping  of  the  records;  the  main  one  is,  perhaps, 
lost  or  misplaced  documents.  If  these  are  carefully 
preserved  and  duly  entered  on  the  inventory,  there 
cannot  be  much  go  wrong  with  the  stores  bookkeeping. 

Overlooking  the  Minimum 

This  is,  perhaps,  the  bugbear  of  a  majority  of  store- 
keepers, and  yet  many  of  them  allow  their  stock  to 
run  below  the  safety  mark.  Many  schemes  have  been 
devised  to  prevent  this  contingency,  but  none  of  them 
are  infallible  and  most  of  them  simply  make  more 
clerical  work.  It  would  seem  that  in  posting  the 
entries  on  the  inventory  that  one  could  not  fail  to 
observe  the  approach  towards  the  minimum,  but  the 
clerks  engaged  on  this  work  may  not  balance  the 
accounts  frequently,  they  may  have  their  attention 
called  to  other  duties,  or  they  may  not  enter  the  items 
promptly  and  allow  this  work  to  accumulate.  There 
must  be  sufficient  clerical  assistance  on  the  inventory- 
desk  to  make  the  postings  immediately  the  documents 
arrive.  With  sufficient  clerical  help  at  this  point 
there  should  never  be  any  question  of  running  past 
the  minimum. 


192 


STORING 


All  the  auxiliary  schemes,  such  as  bin  tickets  and 
markers,  are  simply  makeshifts.  They  are  all  started 
with  the  purpose  of  relieving  the  work  on  the  perpetual 


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FIGURE  No.  94 
Requisition  on  purchasing  agent. 


inventory,  but  this  work  is  the  important  work; 
nothing  else  can  take  its  place  and  it  cannot  be  slurred 
or  neglected.  It  is  better  to  recognize  this  fact  and 
devote  one's  energies  to  accuracy  in  maintaining  it. 


DELIVERIES  FROM  STOREROOM  193 

Purchase  Requisitions 

When  many  clerks  are  employed  posting  the  per- 
petual inventory  it  is  advisable  to  suspend  the  work 
at  a  fixed  hour  every  day,  preferably  late  in  the  after- 
noon, and  the  clerks  can  then  write  up  the  purchase 
requisitions  for  such  material  as  the  records  show  has 
reached  the  minimum.  This  is  the  only  safe  way. 
If  the  clerks  are  permitted  to  make  these  requisitions 
at  any  time  during  the  day  convenient  to  themselves, 
they  may  or  may  not  write  them  up. 

An  illustration  of  a  purchase  requisition  is  given 
in  Figure  95.  All  the  particulars  should  be  filled  in 
by  the  clerks  in  the  spaces  shown.  They  should 
then  be  collected  and  given  to  the  chief  storekeeper 
for  his  signature,  after  which  they  are  passed  along 
to  the  purchasing  agent.  This  method  eliminates 
all  delay,  because  the  requisitions  can  be  in  the  hands 
of  the  purchasing  department  ready  for  his  action  at 
the  opening  of  his  office  the  following  morning. 

Some  storekeepers  make  a  practice  of  sending 
requisitions  to  the  purchasing  agent  once  a  month. 
There  may  be  some  isolated  instances  where  such  a 
system  could  be  followed,  but  it  is  not  recommended 
as  a  general  practice.  If  it  is  permissible  it  would  be 
more  applicable  to  requisitions  for  supplies  than  for 
materials.  If  any  advantages  are  secured  to  the  pur- 
chasing department  by  adopting  this  system  it  would 
have  some  weight  in  deciding  the  matter. 

Summary 

The  man  who  knows  least  about  his  business  is  the 
man  who  usually  fails,  and  the  man  who  knows  most 
seldom  fails.  To  advance  one's  knowledge  of  the 


194 


STORING 


condition  of  that  portion  of  one's  investment  repre- 
sented by  the  stock  of  goods  and  materials  in  the 
stores  there  is  nothing  of  greater  importance  than  a 
well-kept  perpetual  inventory. 


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FIGURE  No.  95 
Storekeeper's  requisition  on  purchasing  agent. 


DELIVERIES  FROM  STOREROOM 


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196  STORING 

Perpetual  inventories  require  perpetual  attention. 
Authorities  in  accounting  methods  are  practically 
united  as  a  unit  in  their  favor.  The  necessity  for  their 
accurate  compilation  is  recognized.  Lack  of  atten- 
tion on  the  part  of  employees,  or  insufficient  help, 
is  the  only  reason  for  the  difficulties  some  people  claim 
to  have  with  them.  The  keeping  of  accurate  records 
can  be  covered  by  a  few  simple  rules. 

First:  Nothing  should  be  permitted  to  enter  the 
storeroom  unaccompanied  by  some  form  of  advice, 
such  as  the  receiving  clerk's  report  (Figure  80)  or 
the  credit  requisition  (Figure  84).  These  documents 
are  used  to  make  the  debit  entries. 

Second:  No  material  should  be  allowed  to  leave 
the  stores  without  a  properly  drawn  requisition  which 
should  clearly  indicate  the  quantity  taken  from  the 
storeroom.  The  requisition  should  be  signed  by  the 
recipient  of  the  material. 

Third:  Accuracy  in  receiving  and  delivering  the 
quantities  specified  and  accuracy  in  posting  the  entries 
are  all  absolutely  essential. 

Fourth:  Perpetual  inventories  should  be  treated  as 
cash  is  treated.  Cash  is  verified  often,  or  should  be. 
A  perpetual  inventory  should  be  verified  as  described 
in  Chapter  Eight. 

Fifth:  The  documents  indicating  the  incomings  and 
outgoings  should  be  preserved  a  sufficient  length  of 
time  to  cover  the  period  when  they  might  be  needed 
to  check  back;  that  is,  until  a  physical  count  is  made. 
If  this  should  uncover  any  discrepancies,  these  docu- 
ments would  be  needed  for  reference. 


INDEX 


PAGE 

A 

Acounting  and  storing 180 

Accuracy  in  weighing 67 

Additional  cost  to  the  user  of 

stored  goods 5 

Apparent  shortages 186 

Appliances  for  storeroom 67 

Auxiliary  sources  of  supply . .  33 

B 

Balancing  storage  considera- 
tions   4 

Barrett  multi-truck 80 

Bins  and  shelving 54 

Bins,  closed  type 58 

details  of  construction. . .  59 

Bookkeeping  with  machines. .  115 

Buying  and  storing 6 

C 

Capital  outlay 12 

Carbon  brushes,  definition  of.  42 

Catalogues 134 

card  for  indexing 140 

usefulness  of 130 

Changes  in  values 11 

Charts  and  diagrams 142 

Chemical  analyses 167 

Clerical  records 97 

Closed  type  of  bins 58 

Columbus  lift  truck 79 

Commercial  definitions 38 

Commercial  storage 2 


PAGE 

Conveyors 89 

for  curves 90 

grades  of 93 

Cost  of  storing 11 

Counting 100 

automatic 108 

by  hand 101 

by  weight  and  estimate. .  102 

even  balance 104 

with  proportional  scales .  105 

machine  beam 68 

counter  type 69 

floor  type 70 

dormant  type 71 

Credit  requisition 84 


Department  diagram 145 

Definitions 35 

commercial 38 

object  of 39 

illustrations  of 40 

obtaining 47 

card  for  recording 48 

Deliveries  from  storeroom.  . .  177 

Delivery,  the  point  of 148 

getting 150 

Deterioration 18 

Disadvantages  of  storing ....  4 
Distinction   between   storing 
for  manufacturing  and 

for  resale 8 

Dual  nature  of  storeroom  work  97 


197 


198 


INDEX 


E 

Equipment  of  storeroom ....  51 

movable 67 

Examination  and  inspection. .  164 

Expense  material  requisition.  189 

of  storing 14 

Extremes  in  storing 20 


Factory  storage 9 

Fluctuations  in  prices 16 

Following  up  shipments 151 


G 


Gravity  conveyors, 
force  of . . 


95 


Importance  of  storage  prob- 
lems    3 

Index  card  for  specifications.  38 

Information  for  storekeeper. .  134 

Inspection  and  examination. .  164 

Inspection  before  delivery . . .  165 

after  delivery 165 

report 166 

Inspecting  engineers 165 

Interest  charges 13 

Insufficient  facilities 12 

Insurance 14 

Issuing  articles  in  sets... 180 

Inventories 114 

physical 117 

perpetual 120 

illustrations  of 

118,  119,  123,  127 

correct 121 

verification  of 125 

and  values..            126 


Investment  in  storage 10 

Invoices  and  receipts 162 


Ladders  for  storeroom 65 

Ledger  for  stores 114 

Location  of  storeroom 51 

Losses  in  storing 18 


M 


Machine  bookkeeping 151 

Manual  operations 97 

Market  and  inventory  prices.  17 
Material   returned   to   store- 
room   171 

Maximum  limit,  meaning  of.  26 

fixing 29 

and  buying 30 

flexibility  of 31 

increasing  the 34 

Mechanical  aids 95 

Minimum  limit,  meaning  of. .  26 

fixing  the 28 

flexibility  of 30 

and  production 28 


N 


Numbering  bins  and  aisles ...       63 


O 


2 

25 


Object  of  storing 

Obsolete  materials 

Obsolete    material    sent    to 

storeroom 173 

Order  form  used  for  receiving 

material 158 

Order  on  storeroom 178 

Overlooking  the  minimum. . .     191 


INDEX 


199 


Part  numbers  tabulated 43 

Partial  receipts 159 

Physical  deterioration 18 

Physical  inventory 116 

Placing  material  in  storeroom  164 

Plimpton  elevating  truck 76 

Price  market 17 

inventory 16 

Production  problems 33 

Profits  in  storing 14 

Progress  report 154 

Proportion  of  storage  space . .  52 

Purchasing  and  receiving. ...  163 

Purchase  requisitions 193,  194 

Purchasing  and  the  storeroom  32 

Psychology 24 

Purpose  of  storing 2 

R 

Racks 53 

with  tote  boxes 110 

for  drill  rods 62 

for  tubes  and  rods 63 

construction  of 64 

revolving 65 

Raw  material  for  manufac- 
turers   15 

Reasons  against  storing 4 

Receiving  clerk 155 

Receiving  material 148 

Receiving  report 161 

Receiving  material  into  store- 
room   168 

Recording  receipt  of  material  156 

Relation  to  buying 7 

Report  of  material  to  be  sold .  174 

Requisitions  and  receipts 157 

on  storeroom 178 

on  purchasing  agent ....  192 
Reverse  side  of  order  used  for 

recording  receipts ....  162 


Rivets,  definition  of 41 

Root  counter 107 

Routine  clerical  work 190 

S 

Scales 71 

Standardization 35 

Stationery  forms 175 

storing 173 

Scientific  storing 12 

Scrap  sent  to  storeroom 172 

Shelving  and  bins 54 

open  type 60 

Shop  orders  as  requisitions. . .  182 

Shortages 184 

Shortage  ticket 185 

requisition 187 

Specifications 35 

technical 37 

Speculative  elements 10 

Stacking  barrels 108 

Storekeeper,  the 130 

qualifications 131 

sphere  of  work 132 

Storeroom  order 178 

requisition 181 

Storing  finished  product 175 

Stores  department 142 

chart  of 145 

outline  of  work 146 

Summary 193 

Supplies  from  stores 189 


Temporary  profits 18 

Testing  materials 164 

report 169 

Tune  element 23 

Tote  boxes,  stacking 109 

nesting Ill 

Tracing  shipments 149 


200 


INDEX 


Transportation  and  storing . .  3 

charges 163 

Trucks 76 

lifting  or  elevating 77 

advantages  of 77 

illustrations  of 78 

Columbus  lift 79 

Barrett 80 

Plimpton 76 

platforms  for 85 


U 


Utilizing  space 65 


W 


Wealth  in  storage 1 

Weighing  machines 71 

with  dial 74 

Withdrawals  from  stores .  .  182 


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